How to Calculate Rental Yield UK (Formula, Worked Example, Tools)
Learn how to calculate rental yield in the UK, work out property yield, and stress-test asking rents before you invest—then use our rental yield calculator with local postcode context.
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How to calculate rental yield in the UK
Gross rental yield is typically (annual rent ÷ property value) × 100. Example: £1,200 monthly rent is £14,400 per year; on a £240,000 purchase that is 6% gross yield before costs. Net yield subtracts voids, management, maintenance, insurance, and financing.
Use realistic rents for the exact postcode, not city averages. Pair the calculator with rental listings and sold prices so your denominator and numerator stay local.
Useful links
- Rental yield calculatorinternal
- Rental listingsinternal
- Price paid data (HM Land Registry)internal
- House price indexinternal
Frequently asked questions
How to calculate rental yield UK?
Divide annual rent by property value (or purchase price) and multiply by 100 for gross yield. Subtract costs for net yield.
How to work out rental yield?
Annualise the monthly rent, divide by the property price, multiply by 100. Stress-test with voids and operating costs.
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