Rental Yield Calculator: How to Calculate Your Property Investment Returns

Understanding rental yield is key to profitable property investment. Find out how to calculate it and what a good yield looks like in the UK market.

Published 4 March 2025 · Property & Real Estate Services

Property & Real Estate Services

Rental Yield Calculator: How to Calculate Your Property Investment Returns

What Is Rental Yield?

Rental yield is a key metric used by property investors to measure the profitability of a rental property. It represents the annual rental income as a percentage of the property’s value.

A higher rental yield typically means better returns, but factors like location, property type, and market trends also impact profitability.

How to Calculate Rental Yield

There are two main types of rental yield:

1. Gross Rental Yield (Basic Calculation)

This calculation gives a quick estimate of returns before deducting costs.

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Property & Real Estate Services

Rental Yield Calculator: How to Calculate Your Property Investment Returns