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Rental yield calculator
Gross yield, and what the rent returns on the cash you put in once every cost is counted.
Questions
What is gross rental yield?
The year's rent as a percentage of the price. £13,200 a year on a £180,000 home is a 7.3% gross yield. It's quick to work out but ignores every cost.
What is net yield?
The rent after running costs (letting agent, repairs, insurance, empty weeks) as a percentage of the price. The mortgage isn't counted, so it compares properties fairly whatever the loan.
What's the difference between yield and return on cash?
Yield measures the property; return on cash measures your money. It is the cash left each year after every cost, mortgage included, as a percentage of the cash you put in: deposit, stamp duty and fees.
What's a good yield?
There's no single answer: yields tend to be higher where prices are low and growth slower. What matters is whether the deal pays after every cost and still pays if rates rise, which the calculator shows.
More terms explained in the glossary.