Rental yield tells you how much a property earns in rent relative to its price — the quickest way to compare buy-to-let opportunities. Here's how gross and net yield are calculated, what a healthy number looks like, and a free calculator to run any property.
Calculate rental yield free →Gross rental yield
Gross yield = annual rent ÷ property price × 100. It's the headline number and ignores costs, so it's quick for comparing — but it flatters properties with high running costs.
Net rental yield
Net yield subtracts running costs — management, maintenance, insurance, vacancy and taxes — before dividing by the price (or by the total cash invested). It's the number that reflects what you actually keep.
What's a good rental yield?
It depends on the market: many investors look for 5–8% gross, but a good yield trades off against capital growth and risk. A very high yield can signal a riskier area or property.
Don't forget vacancy and costs
A month or two empty each year, plus repairs and fees, can turn a great-looking gross yield into a thin net one. Always stress-test with a realistic vacancy rate.
Yield vs cash flow vs return
Yield measures rent against price; cash flow is what's left after the mortgage; cash-on-cash return measures profit against the cash you actually put in. Look at all three before buying.
Frequently asked questions
What is a good rental yield?+
Commonly 5–8% gross, but it varies by city and property. Weigh it against capital growth, risk and your costs — a higher yield often means higher risk.
Is rental yield the same as ROI?+
No. Yield is annual rent against the property price. ROI (or cash-on-cash return) measures profit against the cash you actually invested, including the mortgage.
Should I use gross or net yield?+
Gross is fine for a quick comparison; net is what matters for a real decision, because it accounts for your running costs and vacancy.
The iznkit editorial team builds and documents free, no-sign-up tools for freelancers, small businesses and developers — and writes these guides to go with them.
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