UK Buy-to-Let Calculator
Calculate gross and net yield on a UK rental property after agency fees, maintenance, and void periods.
Details
Result
Net Yield
5.52%
Gross Yield
6.72%
Annual Rent
£16,800
Annual Net Income
£13,800
What yield should you aim for?
- Gross yield = annual rent / purchase price. Simple but ignores costs.
- Net yield = (annual rent − annual costs) / purchase price. The real picture.
Rule of thumb for UK BTL: gross yield above 5% is healthy, above 7% is strong, below 4% typically needs significant capital appreciation to justify.
Costs BTL landlords often forget
- 5% SDLT surcharge on purchase
- Lettings agent fees: 8-15% of rent
- Maintenance reserve: 1% of property value/year
- Void periods: 4-8% of rental income
- Mortgage interest (now only 20% tax credit, not full deduction)
- Buildings & landlord insurance
- Annual gas safety, EICR, accountant fees
Frequently Asked Questions
Everything you need to know, in one place.
What is a good rental yield?
London 3-5%. North of England 5-8%. Scotland 6-9%. A "good" yield is one that covers mortgage + costs with margin. Below 4% gross — reconsider unless for capital growth.
What costs to factor in?
Mortgage interest, letting agent (8-15% of rent), annual maintenance (1% of property value), insurance, ground rent, voids (4-8% of annual rent), accountant, safety certificates.
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