Rental Yield Calculator
Instant Results
Calculate gross and net rental yields for UK investment properties. Get detailed breakdowns of expenses, void periods, and payback time.
Property Details
Annual: £14,400
Drives the auto-filled stamp duty: SDLT bands + 5% additional-property surcharge.
Purchase Costs
Auto: £15,000
£
Annual Operating Expenses
Rates as of Apr 2026
10%
≈ £1,440/year
5%
3 weeks/year
Lost income: £831/year
Gross Yield
5.76%
Before expenses
Net Yield
4.08%
Average
Monthly Net Income
£909
After all costs
Rating:Average
Payback:24.5 years
Cash-on-Cash:62.34%
1% rule: 0.48%
Net yield after Section 24
The headline net yield is after cash costs but before income tax. Pick your band to see the true take-home — Section 24 restricts mortgage-interest relief for higher-rate landlords.
Your income-tax band
£50,271 – £125,140
Net yield (pre-tax)
4.08%
After Section 24
2.45%
Income tax / yr
£4,364
What this means at your band
- CHECKGross yield is 5.76% but your true take-home is about 2.45% after costs and Section 24 income tax at the higher-rate band — the headline net 4.08% overstates it by roughly 1.63 percentage points (£4,364/yr of tax).
- TIPManagement + void allowance costs about £2,188/yr — roughly 16% of the rent. Self-managing (and minimising voids) is the fastest lever on your net yield.
Financial Summary
Annual Rent+£13,569
Total Expenses-£2,660
Void Loss-£831
Net Annual Income£10,909
Property Price£250,000
Purchase Costs£17,500
Total Investment£267,500
Break-Even Rent£235/mo
Yield Analysis
TIP
Always verify rental estimates with local agents and check comparable properties on Rightmove/Zoopla.Net Rental Yield
Net Yield = (Annual Rent - Annual Costs - Void Loss) ÷ Total Investment × 100
Net yield gives you the true return by accounting for all expenses. Total investment includes purchase price plus all buying costs (stamp duty, legal fees, etc).