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    Rental yield calculator: gross and net yield

    Work out the gross and net rental yield of a property from its price, buying costs, rent, yearly costs and empty months.

    Maintenance, insurance, property tax, management, service charges.

    Net yield
    5.32%
    Gross yield
    7.2%
    Net rental income per year
    11,180
    Net per month
    931.67

    Before income tax and mortgage costs. A yield says nothing about whether the price of the property will rise or fall.

    How it works

    Gross yield is the yearly rent divided by the purchase price. Net yield is what is left after empty months and the owner’s yearly costs, divided by everything you paid to buy — price plus taxes, fees and legal costs.

    Example: a 200,000 flat let at 1,200 a month has a gross yield of 7.2%. With 5% of the year empty, 2,500 a year of costs and 10,000 of buying costs, the net yield is about 5.3%.

    Costs worth counting

    Maintenance and repairs, insurance, property tax, management fees, service charges and the months between tenants. They often turn an attractive gross yield into a modest net one.

    Limits

    The yield is before income tax and before any mortgage. It says nothing about whether the property’s price will rise or fall, how easy it is to sell, or whether the rent will be paid on time.

    Updated October 18, 2026