Rental Yield Calculator

Want to know if a rental property stacks up financially? Whether you’re eyeing up a buy-to-let or comparing multiple options, our Rental Yield Calculator gives you a quick snapshot of the property’s return.

Just plug in the purchase price and monthly rental income, and we’ll show you the gross rental yield — one of the key measures used by lenders and investors alike.

Rental Yield Calculator

Rental Yield Calculator

Calculate your buy-to-let property return and compare investment opportunities

Property Investment Details

£
£50k £500k £1M
£
£200 £2.5k £5k
£
Understanding Rental Yield
Rental yield shows how much income your property generates as a percentage of its value. It's a key metric for comparing investment opportunities and assessing profitability.
Gross Yield % = (Annual Rent ÷ Purchase Price) × 100

Investment Analysis

Gross Rental Yield
8.0%
Annual return before expenses
Excellent Yield
Monthly Income
£1,000
Rental income per month
Annual Income
£12,000
Total yearly rental income
Income Multiple
12.5x
Purchase price as multiple of annual rent
Amount Calculation
Purchase Price £150,000 Investment amount
Monthly Rent £1,000 Per month income
Annual Rent £12,000 Monthly rent × 12
Gross Yield 8.0% Annual rent ÷ Purchase price
Excellent Investment Opportunity
At 8.0% gross yield, this property offers excellent rental returns. This is well above average and indicates a strong buy-to-let investment opportunity with good cash flow potential.

What Is Rental Yield?

Rental yield shows how much income your property generates as a percentage of its value. It helps you compare properties and understand whether a deal is financially worthwhile.

Formula:
(Monthly Rent x 12) ÷ Purchase Price × 100 = Gross Yield %

Why Gross Yield Matters

How to Use the Calculator

Just enter:

  • Property purchase price
  • Expected monthly rent

You’ll get:

  • Annual rental income
  • Gross rental yield (%)

Tip: Want to factor in expenses like mortgage costs or maintenance? Ask us for a net yield version or full investment ROI calculator.

Example Scenarios

Scenario 1: High-Yield City Investment

Purchase price: £150,000
Rent: £1,000/month
Annual income: £12,000
Gross yield: 8.0%

Scenario 2: Lower-Yield Suburban Property

Purchase price: £325,000
Rent: £1,100/month
Gross yield: 4.06%

FAQs

A: It depends on your goals. In general, 5%+ is strong in the South, while 7–10% is common in Northern cities and HMOs. But yield alone doesn’t tell the full story — always factor in demand, voids, and resale potential.

A: This calculator shows gross yield, before expenses like mortgage, management, and maintenance. Net yield requires a more detailed calculator (ask us if you’d like one).

A: Yes — just use the total monthly rent across all rooms or bookings. Want help finding a lender who supports high-yield properties? We can help.

A: They use rental income vs loan size, stress-tested at a specific rate — but high yields can certainly help meet lender affordability.

A: Absolutely. Use the calculator side-by-side with your property shortlist to compare yield and narrow down your best options.

Ready to Turn Yield into a Deal? Let’s Talk Strategy

Use our free Rental Yield Calculator to test the numbers — then speak to Mortgage Knight to access specialist lenders, stress-tested borrowing, and funding that works for your portfolio.

We don’t just run the numbers — we help you make them work.