Rental Yield Calculator — UK buy-to-let

As a rough guide, a gross yield around 5–6% is typical nationally, and many investors look for a net yield of at least 5% to justify the risk and effort. Northern regions often reach 7–9% gross, while London is usually lower at 2.5–4.5%.

Gross yield is annual rent divided by the property price. Net yield subtracts your running costs — letting fees, maintenance, void periods and insurance — before dividing by the price, so it reflects what you actually keep. Net yield is typically 25–40% lower than gross.

Gross yield = (monthly rent × 12) ÷ property price × 100. For net yield, subtract your annual running costs from the annual rent first. For a mortgaged property, cash-on-cash return divides the profit after mortgage interest by the cash you actually invested (deposit and purchase costs).

Typically letting-agent fees (10–12% of rent for full management), maintenance (around 1% of the property value a year), void periods (about 5% of rent), landlord insurance, and any ground rent or service charge on a leasehold. Mortgage interest then reduces your cash return further.

It is the annual profit after running costs and mortgage interest, divided by the cash you put in (deposit plus purchase costs). With a mortgage, a modest net yield can still mean the property runs at a loss once interest is deducted — so check this figure carefully.

Strongly. Gross yields range from about 2.5–4.5% in London to 7–9% in the North West, with the Midlands, Yorkshire and the North East in between. Higher-yield areas often have slower capital growth, so investors weigh income against price appreciation.