Rental Yield Calculator UK

Gross yield, net yield and cash-on-cash return, the three numbers that matter for a UK buy-to-let.

Last updated: August 2026

Property

£
£

Annual gross: £14,400

2-4 weeks is a sensible UK assumption.

£

Excludes mortgage interest. Typical: 10-15% of gross rent for a managed BTL.

If leveraged

£

BTL mortgages typically need 25% minimum. Higher deposits get better rates.

%

Calculator uses interest-only (typical for BTL).

Gross yield
5.76%
Annual rent / price
Net yield
4.34%
After voids & costs
Cash-on-cash
0.85%
After mortgage interest

Annual cash flow

Gross rent (£1,200/month × 12)£14,400
Void loss (2 weeks)-£554
Operating costs-£3,000
Mortgage interest (5.5% on £187,500)-£10,313
Net rental profit (pre-tax)£534
This is the pre-tax profit. UK BTL profit is taxed at income tax rates; mortgage-interest tax relief is restricted to a 20% credit (Section 24).
Mortgage interest is not tax-deductible. Since 2020 individual landlords can't deduct mortgage interest from rental profit. Instead you get a 20% tax credit. For higher-rate landlords this means much of the "cash-on-cash" advantage of leverage is lost.

Understanding rental yields

Three different ways to express the same investment, each useful for a different question:

  • Gross yield compares like-for-like across cash and leveraged purchases, useful when comparing properties.
  • Net yield tells you the property's real income return ignoring how you finance it, useful for cash buyers.
  • Cash-on-cash measures return on the actual cash you put in, what matters most to a leveraged BTL investor.

For a typical UK BTL with 75% LTV and a 5.5% mortgage rate, the cash-on-cash number can be 3-4× the gross yield. That's the leverage doing its job (and amplifying losses on the downside too).

  • < 4% gross, typical prime central London. Most of the return is expected from capital growth, not income.
  • 4-6% gross, outer London, the South East and many UK suburbs. Mixed strategy.
  • 6-9% gross, Midlands, North, regional cities. Income-focused, slower capital growth.
  • 9%+ gross, HMOs, holiday lets, properties with material issues. Higher operational risk and management.

Related calculators

Other free UK tools that follow on from this calculation.

Buy-to-Let Calculator

Rental yield, ROI, SDLT surcharge and Section 24 mortgage interest restrictions.

Rental Property Calculator

Full UK BTL analysis: cash flow, cap rate, cash-on-cash, IRR and Section 24 tax over your hold.

Cap Rate Calculator

Capitalisation rate, NOI ÷ property value, to compare UK rental properties like for like.

Mortgage Calculator

Monthly repayments, total interest and LTV for any UK mortgage scenario.

Reviewed by

, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.

Last updated: August 2026. How figures are sourced, reviewed and corrected is set out in our editorial policy. This is general information, not regulated financial advice.

Sources

Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.