Rental Yield Calculator 2026

A gross rental yield of 5–8% is generally considered good for UK buy-to-let. Yields above 8% are strong. In London, yields tend to be lower (3–5%) due to higher property prices, while northern cities like Manchester, Leeds and Liverpool often see yields of 6–10%.

Gross yield is simply annual rent divided by property value — it does not account for costs. Net yield subtracts annual running costs (maintenance, insurance, management fees, void periods) before dividing by property value. Net yield gives a more realistic picture of your actual return.

Typical buy-to-let costs include: letting agent fees (8–15% of rent), maintenance and repairs (1% of property value per year), landlord insurance (£150–£400/year), ground rent and service charges (leasehold), and void periods (budget for 1–2 months per year). Always factor in mortgage payments for accurate cash flow.

Always prioritise net yield. Gross yield ignores costs and always looks more attractive than reality. Net yield subtracts running costs — letting fees, maintenance, insurance, void periods — giving a far more accurate picture of your actual return. A property with an impressive gross yield can deliver a disappointing net yield once real costs are included.

Include letting agent fees (typically 8–15% of rent), maintenance and repairs (around 1% of property value per year), landlord insurance, ground rent and service charges for leasehold properties, and an allowance for void periods when the property is empty. If the property is mortgaged, factor in your monthly mortgage cost for an accurate cash flow figure.

No. Yield measures income, but total return also includes capital growth — the property rising in value over time. A lower-yield property in a strong growth area can outperform a high-yield property in a declining one. Successful investors also weigh tenant quality, management effort and local demand alongside yield.

Most landlords budget for one to two months of vacancy per year to be safe, though well-located properties in high-demand areas may experience less. Building a void allowance into your net yield calculation prevents you from overestimating your real return.