Key takeaways
- Rental yield shows your annual rental income as a percentage of the property's value.
- Gross yield ignores costs. Net yield subtracts them and gives a truer picture.
- Use the calculator below to compare properties quickly.
Rental yield calculator
Gross yield
6.0%
Net yield
4.5%
Annual rent: £12,000. Figures are estimates, not financial advice.
Gross vs net yield
| Gross yield | Net yield | |
|---|---|---|
| Formula | Annual rent ÷ price × 100 | (Annual rent − costs) ÷ price × 100 |
| Includes costs? | No | Yes |
| Best for | Quick comparisons | Real returns |
| Example (£200k, £1,000/mo, £3k costs) | 6.0% | 4.5% |
See your real yield, automatically. Simple Landlord tracks rent and expenses for each property so your net yield is always up to date.
Get early accessCosts to include in net yield
- 1
Mortgage interest
Use interest only, not capital repayments.
- 2
Letting or management fees
Often 8%–15% of rent.
- 3
Insurance and certificates
Landlord insurance, gas safety, EICR and EPC.
- 4
Maintenance and voids
Budget for repairs and empty months.
FAQs
What is a good rental yield in the UK?+
Many landlords aim for 5%–7% gross, but it varies a lot by region and property type.
Should I use purchase price or current value?+
Use purchase price to measure your return, and current value to judge whether to keep or sell.
Written and reviewed by the Simple Landlord Editorial Team
Last reviewed 10 September 2026. This guide is general information, not legal or tax advice.
Sources
See your real yield, automatically
Simple Landlord tracks rent and expenses for each property so your net yield is always up to date.
