Rental Yield Calculator
Use our free rental yield calculator to estimate the gross yield on an investment property in seconds.
Simply enter the property purchase price and expected monthly rent to calculate the rental yield and get a clearer idea of potential returns. Built for landlords, investors and buy-to-let buyers across South East London.
What is rental yield?
Rental yield is a simple way to measure how much income a property generates from rent compared to its value. It is expressed as a percentage and helps landlords quickly compare different buy-to-let investments.
Take a look below to see how to calculate rental yield, what is a good rental yield and more.
How do you calculate rental yield?
The basic formula is:
Annual Rent ÷ Property Purchase Price × 100
Let’s use this example:
Property purchase price: £300,000
Monthly rent: £1,500
Annual rent:
£1,500 × 12 = £18,000
Calculation:
£18,000 ÷ £300,000 × 100
Gross rental yield = 6%
This calculator shows gross rental yield and does not include costs such as mortgage payments, maintenance, insurance or management fees. To get a more realistic picture into the return from your buy-to-let investment after costs, try our Buy-to-Let Return on Investment (ROI) Calculator.
What is a good rental yield?
Many landlords aim for yields between 5% and 8%, particularly in London and South East London. A good rental yield will vary depending on the property, its location, tenant demand and the rent that can realistically be achieved.
Higher yields are often found in lower-priced areas, typically in the north of the country, while more expensive locations such as London and the South East may produce lower yields but offer stronger long-term capital growth.
What is a good rental yield in South East London?
Rental yields in South East London tend to be lower than the national average (5-8%) because property prices are typically higher. Many landlords in the area achieve yields of around 4% to 6%, although this can vary depending on the property, purchase price and rent achieved.
For a more accurate estimate based on current market rents in South East London, try our Buy-to-Let ROI Calculator to estimate the overall return on your investment after costs, or request a free rental valuation from our team.
FAQs
Yes, it is designed for landlords and investors who want a quick estimate of rental return.
Rental yield helps you compare investment properties and understand the income potential of a property before looking deeper at costs and financing.
No, it gives a gross rental yield estimate unless extra cost fields have been added.
want a more accurate yield estimate?
Our calculator provides an estimate based on the figures entered. For a more accurate assessment based on current rental demand in South East London, request a free rental valuation from our team. Click the button below, fill out some information and our team will be in touch to do the rest.