Maintenance, insurance, management, service charge.
Unrented weeks per year.
What is rental yield?
Rental yield is the annual rent from a property as a percentage of its price. Gross yield divides the rent by the price before costs. Net yield takes off empty periods and running costs first, then divides by the price. A higher price or a lower rent reduces the yield. A lower price or a higher rent increases it.
Buy-to-let lenders often look at the gross rent when they underwrite the mortgage. The return you actually keep depends on the net figure, because insurance, maintenance, agent fees and vacant weeks all come out of the rent. This calculator shows both from the price, rent and costs you enter. It does not deduct mortgage interest.
A £250,000 UK property generating £1,200/month rent produces a 5.76% gross yield and a 4.74% net yield after costs and voids.
Yield benchmarks by region
Gross yield ranges
- Central London: 3–5%
- South East: 4–6%
- Midlands: 6–8%
- North England: 7–10%
- HMO / student: 8–15%
What eats net yield
- Voids — budget 2–4 weeks/yr minimum
- Management fees 10–15% of rent
- Service charge on flats
- Reactive maintenance
- Compliance (EPC, gas safety, electrical)
Frequently asked questions
What is a good rental yield in the UK?
4–6% in London/SE, 6–10% in the Midlands and North, 10%+ for specialist lets like HMOs and student. Net yields are typically 2–3% below gross after voids, management and maintenance.
What's the difference between gross and net yield?
Gross yield = annual rent ÷ property price. Net yield = (rent − running costs − voids) ÷ price. Gross is for quick comparisons; net is what your returns actually feel like.
What void period should I assume?
UK averages are 2–4 weeks per year in high-demand areas, 4–8+ weeks in oversupplied or student-heavy markets. New build and premium units sometimes void longer.
Should I include the mortgage in the yield?
Traditional yield calcs ignore mortgage costs (they vary by leverage). Cash-on-cash return includes them. Use this tool for the property-level yield; use the BTL mortgage calc for mortgage cashflow.
How do costs typically break down?
Letting agent 10–15% of rent if managed, landlord insurance £150–£400, maintenance 5–10% of rent, service charge on flats £1,000–£3,000, ground rent £100–£500.
Reviewed by the Mortgage118 editorial team. This calculator excludes mortgage interest and tax; use the BTL mortgage calculator for cash-on-cash return. Provides an estimate only.
- Gross yield
- Rent × 12 ÷ price
- Net yield
- (Rent − voids − costs) ÷ price
- Mortgage interest
- Not included
- Tax
- Not included