Rental Yield Calculator
Calculate your Net and Gross rental yield for your investment property.
*The results provided by this Rental Yield Calculator are based on the information entered, and are intended for informational purposes only. The calculator provides an estimate of the gross and net yield based on the data supplied, but these results are not guaranteed. Rental prices and annual costs can fluctuate, and there are other factors, such as market conditions, property management fees, taxes, and unexpected expenses, that can impact the yield.
This calculator does not account for all variables that may affect your investment’s performance. For a more accurate and tailored assessment of your rental property, we recommend consulting with a property professional.
What Is Rental Yield?
Rental Yield is the return buy-to-let investors can expect to achieve annually from their rental properties. It is expressed as a percentage and helps property investors gauge how much profit they can expect to yield from their investment. It is important for buy-to-let investors to calculate their property’s rental yield to determine whether the property is a good investment. There are two types of rental yield: Gross rental yield and net rental yield.
Gross Rental Yield: This considers the cost of the property and the rental income.
Net Rental Yield: Takes into account additional expenses associated with managing the property, such as maintenance, repairs, and property management fees.
What Is A Good Rental Yield?
What is considered a good rental yield varies on the type of property investment. Generally, the average rental yield is between 5% and 8%, with anything over 6% considered a great rental yield.
These yields can vary greatly depending on a variety of factors. Location significantly impacts rental yield, with more sought-after areas having higher rents. Areas with higher property values, like London, tend to have lower rental yields however, as rent levels are less affected by the rising property prices. Additionally, demand is a key factor, with stronger demand offering greater potential for higher yields.
It is important to conduct a thorough and considered analysis of the property market to decide on areas that can offer the best rental yields.
Some of the best locations in the UK for high rental yields include Liverpool, Manchester, Nottingham and Derby.
How Do I Calculate Rental Yield?
By using our calculator above, you can calculate the rental yield for your property investment.
Input the property price, monthly rent, and annual running costs and we will provide a figure for the gross and net rental yield.
The calculator divides your annual rental income by the value of the property and multiplies this figure by 100 to calculate your rental yield.
Contact one of our consultants today, and we can provide a more detailed estimate of your rental yield.
It is important to note that yields can vary due to a variety of factors and may not be reflective of the entire duration of your investment.
Advantage Investment: Your Partner in Navigating the Property Market
Calculating key figures such as rental yield percentages is vital to crafting a successful property investment strategy. This will provide savvy investors with an edge in the market and allow investors to determine the profitability of their buy-to-let investment.
Advantage Investment’s rental yield calculator can aid your journey through the property market and help investors maximise their returns.
If you need any additional information on rental yields, contact us today. Our award-winning agents offer a free, personalised consultation designed to meet your unique needs. At Advantage Investment, we deliver a multi-award winning service, guiding you through every step of your property investment journey. Invest today and take the first step toward securing your financial future!
