Rental yield and ROI calculator
Gross rental yield is the annual rent divided by the property value, expressed as a percentage, and net yield is the annual rent less annual costs, divided by the property value, expressed as a percentage.
| Property value | Monthly rent | Annual rent | Gross yield |
|---|---|---|---|
| £150,000.00 | £750.00 | £9,000.00 | 6.00% |
| £150,000.00 | £1,000.00 | £12,000.00 | 8.00% |
| £150,000.00 | £1,250.00 | £15,000.00 | 10.00% |
| £150,000.00 | £1,500.00 | £18,000.00 | 12.00% |
| £150,000.00 | £2,000.00 | £24,000.00 | 16.00% |
| £200,000.00 | £750.00 | £9,000.00 | 4.50% |
| £200,000.00 | £1,000.00 | £12,000.00 | 6.00% |
| £200,000.00 | £1,250.00 | £15,000.00 | 7.50% |
| £200,000.00 | £1,500.00 | £18,000.00 | 9.00% |
| £200,000.00 | £2,000.00 | £24,000.00 | 12.00% |
| £250,000.00 | £750.00 | £9,000.00 | 3.60% |
| £250,000.00 | £1,000.00 | £12,000.00 | 4.80% |
| £250,000.00 | £1,250.00 | £15,000.00 | 6.00% |
| £250,000.00 | £1,500.00 | £18,000.00 | 7.20% |
| £250,000.00 | £2,000.00 | £24,000.00 | 9.60% |
| £300,000.00 | £750.00 | £9,000.00 | 3.00% |
| £300,000.00 | £1,000.00 | £12,000.00 | 4.00% |
| £300,000.00 | £1,250.00 | £15,000.00 | 5.00% |
| £300,000.00 | £1,500.00 | £18,000.00 | 6.00% |
| £300,000.00 | £2,000.00 | £24,000.00 | 8.00% |
| £400,000.00 | £750.00 | £9,000.00 | 2.25% |
| £400,000.00 | £1,000.00 | £12,000.00 | 3.00% |
| £400,000.00 | £1,250.00 | £15,000.00 | 3.75% |
| £400,000.00 | £1,500.00 | £18,000.00 | 4.50% |
| £400,000.00 | £2,000.00 | £24,000.00 | 6.00% |
LLCR
LLCR is a private compliance register for landlords and letting agents in England. It keeps every certificate, deadline, notice and proof of service for each property in one tamper-evident record, so the evidence exists in order when a tenant, a council or a court asks for it. It is not a government service and is separate from the Private Rented Sector Database and any other statutory register.
Running costs, rent received and the documents behind them, per property.
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How this is calculated
The annual rent is the monthly rent multiplied by 12. Gross yield is that annual rent divided by the property value, shown as a percentage.
Management and voids are each taken as a percentage of the annual rent, independently of each other, and added to the other annual costs: mortgage interest, service charge, insurance and maintenance. Net yield is the annual rent less those costs, divided by the property value.
Monthly cash flow is the net annual income divided by 12. Return on cash invested is the net annual income divided by the cash invested, and only appears where a cash figure is entered.
Money is calculated in whole pence, and percentages are shown to hundredths of a percent, rounded to the nearest hundredth. Costs above the rent produce negative figures, shown as such: a loss is a result, not an error.
Worked example
Take a property worth £250,000, let at £1,000 per month, with £6,000 annual mortgage interest, management at 10 percent, £300 insurance, £500 maintenance, a 5 percent voids allowance and £65,000 cash invested.
- The annual rent is £12,000, and the gross yield is £12,000 divided by £250,000, which is 4.80 percent.
- Management at 10 percent of the rent is £1,200, and voids at 5 percent is £600. With the interest, insurance and maintenance, total annual costs are £8,600.
- Net annual income is £12,000 less £8,600, which is £3,400. Net yield is £3,400 divided by £250,000, which is 1.36 percent.
- Monthly cash flow is £3,400 divided by 12, which is £283.33. Return on cash is £3,400 divided by £65,000, which is 5.23 percent.
Based on the figures entered, this property grosses 4.80 percent, nets 1.36 percent after costs, and returns 5.23 percent on the cash put in. The spread between the gross and net figures is the running costs, which is why the net figure is the primary result.
Frequently asked questions
What is the difference between gross and net yield?
Gross yield is the annual rent divided by the property value, before any costs. Net yield deducts the annual running costs first, so it reflects what the letting actually produces. Two properties with the same gross yield can sit far apart on net yield once service charges, management and voids are in the picture, which is why the net figure is the more informative of the two.
Why is capital repayment excluded from the cost inputs?
Because repaying capital is not a cost of running the property: it reduces the loan and builds equity, pound for pound. Counting it as a cost would overstate what the letting costs and understate the return. Interest is different: it is a payment that buys nothing back, so it belongs in the costs. On a repayment mortgage, the interest share of the payments is the figure that goes in.
How should a voids allowance be set?
The allowance stands in for rent not received while the property is empty between tenancies. A property empty for a month in a year loses about 8.3 percent of its annual rent, so the figure follows from how long re-letting takes in the local market and how often tenancies turn over. The tool applies whatever figure is entered as a percentage of the annual rent.
Why do these figures exclude tax?
Because tax depends on the owner rather than the property. The same letting produces different after-tax returns for a basic rate taxpayer, a higher rate taxpayer and a company, and mortgage interest in particular is treated differently for tax than as the cash cost counted here. Pre-tax figures are the ones two investors can compare like for like.
What counts as cash invested?
The money actually put in to acquire and prepare the property: the deposit, purchase costs such as legal and survey fees, stamp duty land tax, and any works done before letting. It is the denominator for the return on cash figure, so borrowed money does not belong in it. Gearing is the reason return on cash can sit above or below the net yield.
Last reviewed 21 August 2026.
This tool performs general calculations for information only. It is not financial or tax advice.
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