Rental Yield
Calculator
Rental Income Tax Calculator for Landlords, an Easy to use Tool
Let's TalkLooking for property search, mortgages and legal advice in one place?
Try our BTLPlatform
Achieve your property investment dreams with an SPV
- Looking to escape the daily grind?
- Want a pension you can truly rely on?
- Want to pass on your investments without incurring IHT?
Investing through a limited company SPV can help you unlock the true potential of property investment; so you can achieve financial freedom faster.
Buying a buy-to-let? Don’t sign the contract yet!
It’s crucial to understand the kind of return you can expect from your investment first.Find your rental yield today with our handy buy-to-let rental yield calculator.
Let’s talk
How to build a successful tax-efficient property portfolio
Buy-to-let ownership is changing. Find out how to invest in UK property the tax-efficient way.
Start today
Rental yield calculator
Gross Yield
Net Yield Additional Rate Tax Payer
Net Yield Higher Rate Tax Payer
Net Yield Basic Rate Tax Payer
Net Yield Limited Company
Rental yield numbers explained
Your rental yield is a percentage which shows the value of your rental income when divided by your investment costs (including mortgage repayments, repair costs and other expenses). In other words, it’s a measure of how much profit you can expect to make from your property investment.
To calculate your annual rental yield, simply input your monthly rent fee amount, your monthly expenses, your property’s total value and your monthly mortgage repayment amount into the fields provided.
Make sure the £ symbol has been left out of all the boxes, then click the Calculate button. The calculator will then show you:
- Your gross yield: this is the annual rental yield percentage earned from your rental property before tax.
- The net yield for additional rate taxpayers: if you earn an income of over £150,000 a year and you’re therefore paying income tax at the 45% rate, this is the annual rental yield percentage you’ll earn after taxes.
- The net yield for higher rate taxpayers: if you earn an income between £50,001 and £150,000 a year and you’re therefore paying income tax at the 40% rate, this is the annual rental yield percentage you’ll earn after taxes.
- The net yield for basic rate taxpayers: if you earn an income between £12,501 and £50,000 a year and you’re therefore paying income tax at the 20% rate, this is the annual rental yield percentage you’ll earn after taxes.
- The net yield for limited companies: if you’ve purchased your property through an SPV limited company and you’re therefore paying corporation tax at the 19% rate, this is the annual rental yield percentage you’ll earn after taxes.
What is a good rental yield?
‘Good’ rental yields are somewhat subjective; they’ll differ depending on a range of different factors such as location and property type. Generally speaking, you’ll want a rental yield of at least 5% or 6%.
In any case, it’s important to ensure the money you’re getting out of the property more than covers the amount you’re putting into the property; otherwise, your property investment won’t be making any profits!
Got a question about rental yields or buy-to-lets in general?
Let’s talk
Need help understanding mortgage payments?
Our expert buy-to-let mortgage brokers can help you find out how much you can borrow and how much you’ll pay back each month. Click the button below to get in touch today.
Start Today
The guidance and/or advice contained within the website is subject to the UK regulatory
regime and is therefore primarily targeted at customers in the UK.
The Financial Conduct Authority does not regulate some aspects of buy-to-let mortgages.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Members of
