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Yield Calculator
Looking to calculate the return on a rental property? At City Realtor, we’ve developed a straightforward yield calculator designed to help landlords, property investors and buyers estimate gross rental yield on any residential or buy-to-let property in London or across the UK.
Whether you're an experienced landlord or considering your first investment, understanding potential rental yield is essential for making informed financial decisions. Our tool is quick, reliable and easy to use — giving you the numbers you need in seconds.
Whether you're an experienced landlord or considering your first investment, understanding potential rental yield is essential for making informed financial decisions. Our tool is quick, reliable and easy to use — giving you the numbers you need in seconds.
Yield Calculator
Gross Yield
0.00%
(Without running costs)
Net Yield
0.00%
(With running costs)
City Realtor are experts in the London property market
What Is Rental Yield?
Rental yield is a key performance metric used by property investors to measure how much rental income a property generates in relation to its purchase price. It’s typically expressed as a percentage and can be either gross or net, depending on the costs you factor in.
The gross rental yield is calculated using the annual rental income before expenses, divided by the property’s purchase price. This simple formula allows you to compare investment opportunities and assess their income potential.
The gross rental yield is calculated using the annual rental income before expenses, divided by the property’s purchase price. This simple formula allows you to compare investment opportunities and assess their income potential.
How to Use Our Yield Calculator
Using our yield calculator is simple and requires only basic information. You don’t need an account or registration. Just enter your figures and the calculator does the rest.
Please note: The yields provided by this calculator are estimates. Actual returns may vary depending on your specific property, location, and financial situation. For a more detailed analysis, feel free to contact our team.
- Enter the property's purchase price or current market value into the calculator.
- Input the expected monthly rental income based on local market rates or current tenancy.
- If known, add your estimated annual running costs such as insurance, maintenance, and service charges.
- Click calculate to instantly see your gross and net rental yield percentages.
FAQs
Rental yield is a calculation that shows how much income a property generates compared to its purchase price. It is shown as a percentage and helps landlords and investors understand how profitable a rental property could be. Our rental yield calculator gives you instant estimates based on the price, monthly rent, and running costs of a property.
To calculate gross rental yield, multiply the monthly rent by 12 to get the annual income, then divide that by the property price and multiply by 100. For example, £1,200 per month rent on a £240,000 property would be: (1,200 × 12) ÷ 240,000 × 100 = 6 percent yield. To calculate net yield, subtract annual costs from the rental income before dividing by the property price.
Rental yield helps landlords assess whether a property offers a strong return on investment. A higher yield means better income potential, which can help cover mortgage repayments, maintenance and other costs. Yield also provides a useful comparison tool when choosing between properties or evaluating the financial performance of a rental portfolio.
How do I optimise my rental yield?
- Set the right rental price: Research similar properties in your area to make sure your rent is competitive but not undervalued. Use online tools or speak to us for guidance.
- Minimise empty periods: Reduce rental voids by keeping your property in good condition and responding quickly to tenant queries. Consider offering flexible lease terms or allowing pets to widen your market.
- Review and reduce running costs: Look at your annual expenses like insurance, maintenance, and letting fees. Shop around or renegotiate contracts to increase your net return.
Benefits of Using a Yield Calculator
Understanding your projected yield before purchasing or letting a property gives you a competitive edge. It ensures you don’t rely on guesswork when evaluating whether an investment aligns with your financial goals.
- Identify high-performing investment areas;
- Compare multiple properties side by side;
- Plan cash flow and profitability with confidence;
- Evaluate risk versus return more effectively;
- Avoid overpaying for low-yield assets;
Gross vs. Net Yield
While gross yield offers a quick snapshot of income potential, net yield provides a more realistic picture by factoring in ongoing costs. These costs might include letting agent fees, maintenance, insurance, mortgage interest, and service charges.
Typical net yield costs include:
- Lettings and management fees;
- Property maintenance and repairs;
- Insurance premiums;
- Mortgage interest payments;
- Council tax and service charges;
Using both gross and net figures allows you to evaluate short-term income and long-term returns more accurately.
Who Should Use a Yield Calculator?
Our tool is ideal for anyone involved in the property market. Whether you’re just starting out or expanding your portfolio, knowing your expected yield is vital.
It’s especially useful for:
- Buy-to-let landlords;
- First-time property investors;
- Estate agents assessing valuations;
- Developers researching market trends;
- Mortgage brokers assessing affordability;
Why City Realtor?
City Realtor is an established estate agency in London, known for offering practical tools, market insights and local property knowledge. Our yield calculator is just one way we help our clients invest smarter and navigate the UK property market with confidence.
We work with landlords, developers and investors across London, providing property valuations, lettings services and market advice tailored to your investment goals.
Try Our Yield Calculator Today
Ready to run the numbers on your next investment? Our yield calculator gives you a fast and accurate way to assess potential rental income. Whether you're comparing two properties or running a portfolio check, it’s a valuable tool for any property investor in London or beyond.
Open the Yield Calculator
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