Rental Yield & ROI Calculator
Yield
Gross Yield
6.24%
Annual rent ÷ property value
Net Yield
4.68%
(Rent − running costs) ÷ value
Cash-on-Cash
1.86%
Pre-tax cash flow ÷ cash invested
Annual Breakdown
Gross annual rent
£15,600
Effective rent
£15,002
Letting agent fee
− £1,500
Maintenance
− £1,500
Insurance
− £300
Ground rent / service charge
− £0
Other costs
− £0
Net operating income (NOI)
£11,701
Mortgage interest (5.50% on £187,500)
− £10,313
Pre-tax cash flow
£1,389
Cash invested (deposit + costs)
£74,500
Excludes income tax on rental profits — UK landlords also lose mortgage-interest deductibility (Section 24) and instead receive a 20 % basic-rate tax credit. Run the rental-income-tax calculator for the post-tax figure.
What is the Rental Yield & ROI Calculator?
Rental yield measures the annual rental return on a UK property as a percentage of its value. Gross yield is annual rent ÷ property price; net yield subtracts running costs (management, maintenance, insurance, voids); cash-on-cash return measures pre-tax cash flow against actual cash invested (deposit + costs).
Last reviewed: against HMRC rates for 2024/25 & 2025/26.
Typical UK rental yields by property type
Worked example
A £250,000 BTL renting at £1,300/month: gross yield 6.24% (£15,600 ÷ £250k). After 10% letting fee, £1,500 maintenance, £300 insurance and 2 weeks void, net yield ≈ 4.5%.
Frequently asked questions
+What's a good rental yield in the UK?
5%+ gross is the rule of thumb for a healthy single-let. North-of-England terraces often clear 7–8%; central London flats may sit at 3–4% (capital growth typically compensates).
+What's the difference between gross and net yield?
Gross yield ignores costs: annual rent ÷ property value. Net yield deducts management, maintenance, insurance, ground rent, voids and other running costs — a far more honest income figure.
+Does this calculator include tax?
No. It shows pre-tax yields and cash flow. Use the rental-income-tax calculator to add the income-tax and Section 24 mortgage-interest credit to get a post-tax view.
+What is cash-on-cash return?
Pre-tax annual cash flow ÷ cash actually invested (deposit + purchase costs). It tells you how hard your equity is working — particularly useful when comparing leveraged BTL against unleveraged investments.
+How many void weeks should I budget?
2–4 weeks per year is typical for a well-located single-let; HMOs and student lets see higher turnover. Conservative landlords plan 8% of rent (~4 weeks) as the void allowance.