UK property tools
Rental yield is annual rental income expressed as a percentage of a property’s price. Divide annual rent by the purchase price, then multiply by 100 for gross yield. Use our Rental Yield Calculator UK to deduct running costs, allow for empty weeks and see cash flow after mortgage payments.
Need the purchase-tax figure first? Use the UK Stamp Duty Calculator for SDLT, LBTT or LTT, then bring that cost into your yield analysis.
Start with the example figures, then enter your own quotes. All money is in pounds sterling. Results cover the first year; costs are annual unless labelled otherwise. Nothing you enter is sent by this calculator.
Estimates before personal income tax. Positive cash flow is not a guarantee of profit or a mortgage approval.
For gross yield, divide a full year’s rent by the purchase price and multiply by 100. For example, £1,200 a month is £14,400 a year; on a £200,000 property, that is 7.2% gross yield before any costs.
If floor areas in listings use different units, use the square metre to square feet converter before comparing similar properties.
Gross yield is a starting point. It assumes rent arrives throughout the year and ignores costs. Operating net yield deducts empty periods, agent fees, maintenance, insurance, ground rent, service charges and the other annual costs you enter.
This net rental yield calculator uses the purchase price as the denominator for both yields. Purchase tax and buying costs instead increase the cash invested, reducing cash-on-cash return and rental ROI. Mortgage payments are deducted separately in cash flow.
Some calculators use a different definition of net yield. Check the denominator and treatment of interest before comparing figures.
Operating costs include agent fees on collected rent plus fixed annual costs. Interest-only payments are mortgage balance × annual interest rate ÷ 12. Repayment payments use P × r ÷ [1 − (1 + r)−n], where P is the loan, r is the monthly interest rate and n is the term in months. At zero interest, the payment is P ÷ n.
The first-year rental ROI is an income-and-equity measure, not a lifetime investment return. It excludes changes in property value, sale costs, income tax and capital gains tax. Cash-on-cash return excludes capital repayments because that money is tied up in the property.
These are illustrative figures, not market averages. The example assumes £1,200 monthly rent, two empty weeks, a £50,000 deposit and a £150,000 interest-only mortgage at 5%. The agent’s fee is 12% including VAT, charged on rent received.
Annual maintenance is £1,200, insurance £300 and other running costs £300. Ground rent and service charge are zero. Other buying costs are £3,000. For an England purchase with additional-property rates and no non-resident surcharge, the purchase-tax estimate is £11,500.00.
The gross yield looks stronger than the spendable return because the mortgage, voids and running costs still need paying. Press “Reset example” to reproduce these figures in the tool.
A useful yield is one that leaves a workable margin for the particular property and your financing. There is no universal target on this page: an advertised gross yield alone cannot tell you whether a purchase works. Compare similar local homes, check achievable rents and stress-test repairs, voids and a higher mortgage rate.
Keep market evidence separate from assumptions. Our property research hub covers available markets; check the country and date before using any figures. The calculator does not supply a UK rent valuation.
Do not count a cost twice. Put recurring items in annual costs and upfront items in buying costs. A cash expense is not automatically deductible for tax: check GOV.UK guidance on rental income and expenses.
Start with the costs and achievable rent rather than a target percentage. Compare management quotes on the same VAT basis, plan maintenance and reduce avoidable empty periods. Test whether an improvement’s likely extra rent justifies its cost before spending.
Clear, accurate property details can help prospective tenants assess a home. Use our property listing guide when preparing a listing, and compare saved properties using the same assumptions where suitable listings are available.
Multiply the monthly rent by 12, divide by the purchase price and multiply by 100. That gives gross yield before costs. To calculate the operating net yield used here, first deduct rent lost during voids, letting fees and annual running costs. Divide the remaining amount by the same purchase price.
Definitions vary. This calculator keeps financing separate: net yield is after voids and operating costs, but before mortgage payments and personal income tax. Cash flow then deducts the full mortgage payment. Keeping both figures visible makes it easier to compare a cash purchase with a mortgaged property.
There is no single percentage that makes every property a good investment. Compare similar local properties using the same yield definition, then check the cash left after realistic costs and mortgage payments. A higher advertised gross yield can still leave less cash if repairs, service charges or empty periods are greater.
Use the agreed purchase price when assessing a new purchase. For an existing property, current market value can show the yield on today’s value, but it is a different measure. Keep the basis consistent when comparing properties. The buying-cost and cash-invested estimates on this page are designed for a new purchase.
This calculator reduces annual scheduled rent by the fraction of the year left empty: void weeks divided by 52. Letting fees are applied to the rent actually received, whilst fixed annual costs continue. Monthly cash flow is an annual average, not a prediction of the cash arriving in each calendar month.
Yes. Enter either your deposit or mortgage amount, then choose interest-only or repayment. Interest-only payments do not reduce the balance. Repayment cash flow includes interest and capital repayments; first-year rental ROI adds the capital repaid back as equity gained. The entered rate is assumed to stay constant for the first year.
Choose the nation where the property is located. England and Northern Ireland use SDLT; Scotland uses LBTT and, where applicable, ADS; Wales uses LTT. The additional-property setting is a user-selected assumption, not an eligibility assessment. You can include an estimate, enter a professional quote or exclude purchase tax from this scenario.
Cash-on-cash return divides annual cash flow after mortgage payments by the cash invested. The first-year rental ROI shown here also includes mortgage capital repaid, which increases equity rather than spendable cash. Neither figure includes house-price changes, sale costs or personal taxes. If cash invested is zero, percentage returns are not defined.
