Rental Yield Calculator

Check the rental yield for a property.

Compare annual rent with the property's price to understand its gross rental yield.

Whether you're considering renting out your own home or comparing a buy-to-let investment, rental yield helps you put the expected rent into context. PropertyChecker can help estimate both the property's value and its potential rental income.

How much would I get for renting my house?

Our paid service includes estimated rental prices based on market data from the local area. Enter the postcode and select your property to explore the information available. You can also use our Rent Calculator to find out more about checking local rental prices.

Compare properties of a similar size, type and condition, and consider features such as parking or outdoor space. The estimate gives you a starting point, rather than a guarantee of the rent a tenant will pay. A local letting agent can help you assess an achievable rent for the property as it stands.

How do I calculate rental yield?

Gross rental yield shows annual rent as a percentage of a property's price or value, before expenses.

Gross rental yield = annual rent ÷ property price × 100

If you're using monthly rent, multiply it by 12 first. For example, a £200,000 property renting for £1,000 per month would produce £12,000 a year. Its gross yield would be 6%.

That figure helps you compare rental income with the cost of the property. It isn't the amount of profit you'll keep.

What information do I need?

You'll need a property value or purchase price and a realistic rent figure. PropertyChecker can help with both: our free property check includes an estimated property value, while our paid service includes estimated rental prices based on local market data.

Use the agreed purchase price when assessing a purchase, or the current estimated value if you're reviewing a home you already own. Our House Value Calculator explains the valuation service. Keep the same basis when comparing results, and remember that an estimate isn't necessarily the price a buyer will pay.

Can I rent my house out?

You may be able to, but check the permissions and responsibilities before advertising it. If you have a mortgage, get your lender's permission to let the property. For a leasehold home, check whether the lease permits letting and whether consent is needed. Tell your insurer about the change in use too.

You'll also need to meet the landlord requirements that apply where the property is located, including relevant safety and licensing rules. GOV.UK's landlord guidance provides a starting point and links to the separate rules for Scotland and Northern Ireland. A rental estimate or yield result doesn't establish permission to let.

What does it cost to check rental information?

PropertyChecker's rental information is part of our paid service. Check the available information and price before purchasing. The example and formula on this page explain how gross yield is calculated.

How do empty periods affect rental yield?

A period without a paying tenant reduces the income received, even if the advertised monthly rent stays the same.

For the £200,000 property above, one month without rent would reduce annual income from £12,000 to £11,000. The yield based on that income would be 5.5% before expenses, rather than 6%.

Allow for time between tenants, repairs and the possibility that a property takes longer to let than expected. Don't count an empty period twice if you've already reduced the annual rent to allow for it.

What is the difference between gross and net rental yield?

Gross yield doesn't deduct running costs. A net calculation deducts specified costs before comparing the remaining income with the property's price or value.

For example, £12,000 annual rent less £3,000 in annual operating costs leaves £9,000. Dividing that by £200,000 gives 4.5%, before mortgage costs and tax in this example.

Relevant expenses can include letting or management fees, insurance, repairs, compliance costs, and service charges or ground rent for a leasehold property. The costs used in a “net yield” figure can vary, so check the definition before comparing two results.

Mortgage payments, tax and the cash you've invested also affect the return you receive. A gross yield calculation doesn't work these out for you.

Should I use the purchase price or my total buying costs?

A simple gross yield normally uses the property price or value. You can also compare rent with the total acquisition cost, including relevant purchase costs and initial work, but label that calculation clearly.

For example, using £210,000 total cost rather than a £200,000 purchase price would give a lower percentage for the same rent. Compare properties using the same approach rather than mixing price-only and total-cost figures.

What is a good rental yield?

As a rough point of reference, Paragon Bank reported an average gross yield of 7.22% for Q3 2026 in its buy-to-let mortgage offer data. That's before costs, and it represents the properties in that lender's data rather than every rental home in the UK. See Paragon's published figures and methodology.

That gives you a number to compare with, but falling below it doesn't automatically make your property a poor rental. Location and property type make a substantial difference. Compare similar local properties, then check how much rent remains after expenses and empty periods. A higher headline yield may come with greater costs.

Yield also doesn't show whether the property's value will rise or fall, or whether the rent will cover all your monthly payments.

Is rental yield the same as return on my deposit?

No. Rental yield compares income with the property's price or value. A return on the money you've invested uses a different calculation and needs to account for the deposit, buying costs, finance and other expenses.

Will a rental yield result tell me how much I can borrow?

No. Lenders use their own rental coverage and affordability criteria. The calculation doesn't confirm mortgage eligibility or guarantee future rental income.