Annual rent and cost stack
Rent, running costs, finance costs, and profit.
Annual amount
Rental Yield Calculator
Estimate rental yield, monthly cash flow, income-tax impact, and a sale CGT 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.
Investment yield
How gross and net yield are separated
Gross yield is quick, but the net view is usually where the real landlord comparison sits.
Yield method
The calculator compares rental income with property value or purchase cost to estimate gross yield.
Where extra costs are entered, it also shows a clearer net position after mortgage interest, maintenance, voids, management fees and other landlord costs.
Yield pathgross yield = annual rent / property value; net yield = estimated net annual income / total property cost
Rent-versus-price example
Example: rent against purchase price
- Monthly rent: GBP 1,100
- Property value: GBP 220,000
- Annual costs and mortgage interest: entered by user
Result: Gross yield is 6% before costs because GBP 13,200 annual rent is divided by GBP 220,000 property value.
Net yield can be much lower once financing, maintenance, tax and void periods are allowed for.
Cash flow behind the headline
- A high gross yield can still produce weak cash flow if costs, tax or mortgage interest are high.
- Use net yield and monthly cash flow together, especially when comparing buy-to-let options.
Content reviewed: 7 September 2026.
Guide
Rental Yield Calculator notes
Model rent, financing, maintenance, voids, management costs, income-tax assumptions, and a rough residential CGT sale scenario.
Choose the rules year that matches the scenario you are checking.
Review the calculation notes where rules, tax years, thresholds, or eligibility affect the result.
FAQs
Rental Yield Calculator FAQs
What is the Rental Yield Calculator for?
Model rent, financing, maintenance, voids, management costs, income-tax assumptions, and a rough residential CGT sale scenario.