Tool
Rental yield calculator
Gross annual yield from price and monthly rent
Rental yield compares a year of rent with the price of the property. Enter the price and the monthly rent to see the gross annual yield.
It is a quick way to compare properties on the same basis. It is not a forecast, and it does not say whether a purchase is a good one.
How it works
gross yield = (monthly rent × 12) ÷ price × 100
This is a gross figure. It ignores tax on rent, maintenance, agent fees, periods when the property is empty, unpaid rent, and the cost of any loan. Net returns are lower than the gross yield. It also says nothing about how the price or the rent may change.
Use real, current figures: an actual signed rent or a quote from a source you trust, and the price you would actually pay.
This is an estimate, not advice. The result depends on the numbers you enter and the method described above. It is for general information only and is not financial, legal or tax advice. Check figures with your bank, society, authority or a qualified professional before you decide anything.