BarrettMortgages

Rental Yield Calculator

Check the yield on a buy-to-let, and whether the rent is likely to pass a lender’s rental test.

Rental yield calculator

Gross and net yield, plus whether the rent is likely to pass a lender’s stress test.

Letting fees, insurance, maintenance, void periods.
6.60%Gross yield
Annual rent£13,200
Net yield5.40%
Loan to value75%
Rental cover at 5.75%153%
Likely to pass stress testYes — 125% cover met

Lenders stress rent at 125–145% depending on your tax band and product. Five year fixes are usually assessed more generously.

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What is a Rental Yield Calculator?

The Rental Yield Calculator is a powerful tool for property investors, helping you measure the profitability of a rental property. By calculating the annual rental income as a percentage of the property’s value, this calculator provides a clear snapshot of your potential return on investment (ROI). It’s an essential resource for anyone looking to invest in the rental market.

How Does Rental Yield Work?

Rental yield is calculated by dividing your annual rental income by the property’s purchase price or current market value, then multiplying by 100 to get a percentage. This figure helps you determine whether a property is a worthwhile investment and how it compares to other options.

  • Gross Rental Yield: Considers the property price without factoring in additional costs.
  • Net Rental Yield: Accounts for expenses like maintenance, insurance, and property taxes, providing a more realistic view of profitability.

Why Use Our Rental Yield Calculator?

Our calculator simplifies the process, allowing you to:

  • Compare potential yields for different properties
  • Factor in expenses for a net yield estimate
  • Plan your investment strategy with confidence

Whether you’re a seasoned investor or exploring buy-to-let opportunities, this tool equips you with the data needed to make informed decisions.

Next step: Our guide to buy-to-let mortgages