Buy-to-let rental yield calculator

Rental yield is a quick way to compare buy-to-let deals. Gross yield ignores costs; net yield and cash-on-cash give a clearer picture of what you might actually keep.

How it’s worked out

• Gross yield = annual rent ÷ property value × 100
• Net yield = (annual rent − annual costs) ÷ property value × 100
• Cash flow = annual rent − costs − mortgage interest
• Cash-on-cash = cash flow ÷ cash invested × 100

Annual costs might include letting fees, insurance, ground rent, service charges, maintenance and voids. Mortgage interest is optional so you can model interest-only or repayment interest separately.

Worked example

£200,000 property, £1,000 a month rent, £2,400 costs, £6,000 mortgage interest, £50,000 deposit:

• Gross yield = £12,000 ÷ £200,000 = 6%
• Net yield = £9,600 ÷ £200,000 = 4.8%
• Cash-on-cash = £3,600 ÷ £50,000 = 7.2%

This calculator does not model Income Tax on rental profits, Section 24 restrictions, or stamp duty — those depend on your wider circumstances.

Frequently asked questions

What is a good rental yield in the UK?

Gross yields often sit around 4–8% depending on the area. Net yield after costs is what matters for cash flow. Compare similar local properties rather than chasing a national average.

What is cash-on-cash return?

Cash-on-cash divides your annual cash flow (rent minus costs and mortgage interest) by the cash you put in (usually the deposit plus purchase costs). It shows return on your own money, not the full property price.