How it works

Rental yield measures the annual rent a property produces relative to its price. We show three figures so you see the full picture.

1. Gross yield

Annual rent (monthly rent × 12) divided by the property price, times 100. Quick, but ignores costs.

2. Net yield

We subtract your annual running costs — letting fees, maintenance, voids and insurance — from the rent before dividing by the price. Net yield is typically 25–40% lower than gross.

3. Cash-on-cash ROI

For a mortgaged property, we take the profit after mortgage interest and divide by the cash you invested (deposit). A modest net yield can still be a loss once interest is deducted.

Typical assumptions

Letting agent 12% of rent, maintenance 1% of value, voids 5% of rent, insurance £400 a year. All are editable — change them to match your deal.

This is a free, independent educational tool. Yields are estimates based on the figures you enter and typical cost assumptions — actual rents, costs and returns vary by property and area. It is not investment, tax or financial advice. Do your own due diligence and speak to a qualified adviser before buying.

Sources: Moneymeister — UK rental yields 2026 · PropertyAlert — how to calculate rental yield (2026)