Rental Yield Calculator
Enter the price, the rent and your yearly costs to see gross yield, net yield and the cash flow left after interest-only mortgage payments.
このコンテンツは英語です。
These figures are estimates only and are not advice. Tax on rental income, mortgage fees and changes in rent or rates are not included. Check the figures with your own accounts or an accountant.
計算例
Yield on a cash purchase
Price £250,000, rent £1,200 a month, 2 empty weeks a year, agent fee 10 per cent, insurance £300, repairs £600, no mortgage
Gross yield 5.76%, net yield 4.62%.
Gross yield is the full year of rent over the price, while net yield deducts the empty weeks and running costs.
Yield with a mortgage
Price £250,000, buying costs £5,000, mortgage £150,000 at 5 per cent, with the same rent and costs as the first example
Net yield 4.53% on £255,000, interest £7,500 a year, and cash flow of £338.46 a month.
Cash flow takes off the mortgage interest as well, so it is lower than the net yield suggests.
Rental Yield Calculator について
This rental yield calculator measures how well a buy-to-let property pays. Enter the purchase price and monthly rent for the gross yield, which is a full year of rent divided by the price. Then add buying costs, empty weeks, letting agent fees, insurance, repairs, ground rent and other yearly costs to get the net yield. It updates as you type, so you can test different rents, costs and mortgage rates in seconds, with no extra steps needed and no need to start again.
If you borrow to buy, enter the mortgage amount and interest rate. The calculator treats it as interest only, takes the interest off your income and shows the yearly and monthly cash flow, plus the return on the cash you put in yourself. A table lists every income and cost line, so you can see which costs matter most. It is useful for comparing properties and checking an investment before you make an offer. Remember that rent can change and that tax on rental income is not included.
Rental Yield Calculator の使い方
- Enter the purchase price, any buying costs and the monthly rent.
- Add empty weeks, the agent fee percentage and your yearly costs.
- Enter the mortgage amount and interest rate if you are borrowing.
- Read the gross yield, net yield, cash flow and the table of costs.
主な使いみち
- Comparing two buy-to-let properties
- Checking an investment before you make an offer
- Seeing the effect of agent fees and empty weeks
- Testing whether rent covers interest-only mortgage payments
よくあるご質問
What is gross rental yield?
Gross yield is a full year of rent divided by the purchase price, shown as a percentage. For example, £1,000 a month on a £200,000 property is £12,000 a year, which is a gross yield of 6%. It ignores costs, so it is best for a first comparison.
What is net rental yield?
Net yield takes off running costs and empty weeks, then divides by the purchase price plus buying costs. It gives a more realistic picture of the return before tax and mortgage payments. A property can have a good gross yield and a much lower net yield.
How is cash flow worked out?
Cash flow is the income left after running costs, minus the yearly interest on the mortgage. The tool treats the mortgage as interest only, so it multiplies the amount borrowed by the rate. A negative figure means rent does not cover the costs and interest.
Are tax and mortgage fees included?
No. Tax on rental income, arrangement fees, changes in rent and changes in interest rates are not included, and all of them can change your real return. Check the figures with your own accounts or an accountant. This is an estimate only and is not advice.
What counts as a good rental yield?
There is no single answer. It depends on the area, the property type and your costs, and a higher yield often comes with more risk or more upkeep. Compare net yield with your mortgage rate and your other options rather than relying on one number.