Annual rent and cost stack
Rent, running costs, finance costs, and profit.
Annual amount
Property
Rental Yield Calculator
Model rent, financing, maintenance, voids, management costs, income-tax assumptions, and a rough residential CGT sale scenario.
Monthly after-tax cash flow£109Estimated surplus
Gross yield6.8%
Net yield after tax4.4%Before SDLT and sale costs
Sale CGT scenario
Estimated taxable gain and CGT for the sale price entered.
Amount
Property numbers
Deposit25.0% of purchase price£60,000
Estimated mortgage paymentInterest-only basis£780
Effective annual rentAfter 3 void weeks£15,265
Operating profit before finance£11,243
Cash return on depositAfter-tax annual cash flow divided by deposit2.2%
Tax assumptions
Rules year6 April 2026 to 5 April 20272026/27
Other annual income before tax£40,000
Rental income tax before finance-cost credit£2,443
Finance-cost credit estimate20% of mortgage interest, capped by the modelled tax£1,872
Rental income tax estimate£571
Sale CGT estimate
Gross sale gain modelled£40,000
Taxable income used for CGT band£27,430
CGT annual exempt amount£3,000
Taxable gain£37,000
Estimated CGTResidential property, 2026/27£8,264
Assumptions
Calculation notes
- Residential finance-cost relief is simplified as a 20% credit against the estimated rental income tax.
- CGT uses selected 2026/27 residential-property rates and does not include Private Residence Relief, losses, multiple owners, timing rules, or previous disposals.
- Does not include stamp duty, legal fees unless entered in CGT costs, refurbishment outside capital improvements, insurance nuances, arrears, licensing detail, or lender tax rules.
- Rental decisions can be tax-sensitive; treat this as an early screening tool only.