How do I calculate rental yield on a buy-to-let property?

Gross yield = (annual rent / purchase price) x 100. For example, a property bought for £150,000 achieving £750 per month generates £9,000 per year, giving a gross yield of 6%. Net yield uses the same formula but replaces annual rent with net income after all costs have been deducted.

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Rental Yield Calculator

Q: What is a good rental yield in England?

A gross yield of 6% or above is generally considered a strong result for buy-to-let property in England. Northern English cities such as Liverpool (7 to 10%), Leeds (6 to 8%) and Manchester (6 to 7%) consistently outperform the national average. London typically yields 3 to 5% gross. Net yield after all costs is typically 1 to 2 percentage points lower than gross.

Calculate gross and net rental yield for any English investment property. Enter your monthly rent and all running costs to see your real annual return. Gross yield is a quick benchmark; net yield is the figure that matters for cashflow planning.

Property and Income

Purchase Price

Monthly Rent

Annual Running Costs

Monthly Mortgage Payment

Leave blank if calculating gross yield only.

Letting Agent Fee

Typically 8 to 12% of monthly rent.

Annual Maintenance Budget

Budget 1% of property value per year as a rule of thumb.

Annual Landlord Insurance

Annual Void Allowance

weeks

2 weeks per year is a typical allowance for professional management.

This calculator is for guidance only. Actual yields will vary based on local rental demand, property condition, void periods, tax position and financing costs. Speak to our team to source properties benchmarked against verified market data for specific English cities.

Rental Yield FAQ

What is a good rental yield in England?

A gross yield of 6% or above is generally considered strong for buy-to-let property in England. Northern cities outperform significantly: Liverpool averages 7 to 10%, Leeds 6 to 8%, Manchester 6 to 7% and Birmingham 5 to 7%. London typically yields 3 to 5% gross. Net yield after costs is usually 1 to 2 percentage points lower. Read our guide to calculating rental yield for worked examples.

What is the difference between gross and net rental yield?

Gross yield is annual rental income divided by purchase price. Net yield deducts all running costs including mortgage payments, letting agent fees, maintenance, insurance and void periods before dividing by purchase price. Gross yield is useful for quick comparisons. Net yield is the figure that shows your actual annual return and cashflow position.

Which English cities have the best rental yields?

Liverpool leads with average gross yields of 7 to 10%, driven by strong rental demand and lower property prices. Leeds follows at 6 to 8%, with Manchester at 6 to 7% and Birmingham at 5 to 7%. All four cities offer significantly higher yields than the national average and benefit from strong graduate populations and economic growth. See our city guides: Liverpool, Manchester, Leeds, Birmingham.

Find Properties That Hit Your Target Yield

Tell us your target yield and budget. Our sourcing team will identify off-market investment properties in England that match your investment criteria with verified rental market data.

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