Free Rental Yield Calculator | For Property Investment
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Rental Yield Calculator

The rental yield calculator allows you to work out the gross and net rental yields on any individual property or the entire portfolio of your lettings business.
Rental Yield Calculator
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Property purchase costs
£
Current property value
£
Monthly rent
£
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Annual costs
£
Gross Rental Yield 0.00%
Net Rental Yield 0.00%
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Why Calculate Your Rental Yield?

Calculating your rental yield will help you see if your property is a good investment, and you might need it if you’re considering a buy to let mortgage.

Jump straight into the calculator on the left or scroll down for instructions on how to use it.

If your properties are in the UK and you’re working out rental yield in UK currency this calculator will do it for you. If you aren’t using UK currency scroll down to find out how to work out the rental yield for yourself.

  1. First decide if you’d like to work out your rental yield based on property purchase cost or current property value and select the right drop down box in the calculator.
  2. If you’re working out rental yield based on the current property value, enter the property value into the form.
  3. If you’re working out rental yield based on the property purchase cost you can either enter the entire cost into the box provided, or, you can use the plus button on the left to add in considerations such as stamp duty, mortgage fees and refurbishment costs among others.
  4. Next enter the monthly rent amount into the calculator. This is the amount of rent your tenant pays to you each month.
  5. If you know the combined total of your annual costs you can enter this into the calculator. If you haven’t already added it all up you can click the plus button to add individual costs like council tax, insurance, ground rent etc.
  6. Once you’ve entered all the information click the big orange calculate button to see your rental yield percentage.

The rental yield calculator is best for anyone wanting to calculate rental yield on a property they already own or one they intend to buy. It is especially useful for:

  • Buy to let landlords
  • New landlords
  • Letting agents

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How to Work out Rental Yield

If you’re working out rental yield for a single property, or properties you already own, it’s straightforward. Divide your annual rental income by the property value and then multiply it by 100 to get your yield percentage.

Don’t forget to exclude anything from your annual rental income that you regularly spend on the properties or their maintenance, or your yield percentage won’t be accurate.

Use our handy graphic below as a reminder:

Graphic explaining how to work out rental yield

If you’re working out the rental yield for a property you don’t own yet or one you don’t have tenants in this will be difficult. You might not yet know how much rent you’ll charge or how much your property expenses will be. In this instance you can use estimated figures but be aware that your rental yield calculation is only as accurate as the numbers you put into it.

The easiest way to calculate rental yield

Without a doubt, the easiest way to calculate rental yield is to get an accountant to do it!

We’re not all made of time and money though, so the second best way is to have an accounting engine do it for you.

The Landlord Vision software contains powerful accounting features that will help you keep on top of your finances all year round. If you had Landlord Vision not only would you have been able to fill out our calculator quickly, but you’d be ready and waiting for tax return time instead of dreading it.

An easier way to keep
track of all your property
finances

  • Easily and securely import bank transactions via live banking for smooth reconciliation
  • Get ahead of Making Tax Digital for individuals and start using digital tax returns today
  • Track income and expenditure, create invoices and monitor all your finances without a subscription to a separate accounting software.
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