UK rental yield screener. Computes market gross yield on purchase price, gross yield on total acquisition cost, and operating net yield after void allowance, management fee, and fixed annual operating costs.
Gross and net rental yield calculator
UK rental yield screener. Computes market gross yield on purchase price, gross yield on total acquisition cost, and operating net yield after void allowance, management fee, and fixed annual operating costs.
Inputs
- Annual gross rent (GBP): Expected gross annual rent before voids and fees.
- Purchase price (GBP): Headline purchase price.
- Acquisition costs (GBP): SDLT, legals, broker, survey, etc. Set to 0 to exclude from capital base.
- Void allowance (percent): Percentage of the year the property is vacant or not rented.
- Management fee (percent): Letting or management fee as % of collected rent (after void).
- Other annual costs (GBP): Insurance, certificates, maintenance allowance, ground rent, etc.
Outputs
- Total acquisition basis (GBP)
- Market gross yield (percent)
- Gross yield on acquisition cost (percent)
- Effective gross rent (after void) (GBP)
- Net operating income (before finance and tax) (GBP)
- Operating net yield (percent)
Calculation formula and denominator
Market gross yield = annual rent ÷ purchase price. Operating net yield = annual rent less modelled operating costs ÷ purchase price. Finance is shown separately.
How to Use This Calculator
- Enter the gross annual rent you expect a property to collect at full occupancy.
- Enter the purchase price and optional acquisition costs. They are kept out of the market gross-yield denominator and used for a separately named yield-on-cost metric.
- Enter void allowance, management fee percentage, and any fixed annual operating costs.
- Read market gross yield (annual rent ÷ purchase price), gross yield on acquisition cost, and operating net yield (net operating income ÷ purchase price).
- Use these for screening only; lender stress, finance, and tax are not modelled here.
Worked example
£12,000 rent on a £200,000 purchase is 6.0% market gross yield. If annual operating costs are £3,000, operating net yield is 4.5%.
Method and sources
Reviewed: 26 August 2026
- Use annual contracted or evidence-backed rent.
- Separate purchase price from acquisition and works costs.
- Itemise voids, management and recurring property costs.
Sources
Assumptions and limitations
- Tax, capital growth and finance costs are not implied by gross yield.
- A percentage is only as reliable as the rent and cost evidence entered.
