Rental Yield Calculator
It is worth knowing how to compare the yield from one property to the next.

The yield is the amount of income the property generates expressed as a percentage of the property’s value. You can use a yield calculator to help you compare one property from the next. It does not take into account any potential Capital Growth on the value of the property which can only be an educated guess any way. The yield however is an accurate figure as it is based on the actual rent and the current purchase price.

If you are out and about and do not have this tool with you, it is worth knowing how to manually calculate the properties yield:

Annual Rental income divided by the properties purchase price x 100 = Annual yield %

Example, property bought for £85000 generating £500 per month rent:

£6000÷£85000x100= 7.06% yield

There are differences of opinion about what represents a good yield. As a guide 4-5% would be low. 5.5-7% would be average and over 7.5% would be high.

R E N T A L  Y I E LD    C A L C U L A T O R

Enter the anticipated amount of rent: monthly £ or annual £ Enter the purchase price: £ The estimated amount of yield is: %

Contact us if you have a question.