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Gross rental yield calculator
Estimate gross rental yield from monthly contracted rent and a purchase price or current valuation.
How we calculate it
- Annual contracted rent is monthly contracted rent multiplied by 12.
- Gross yield is that annual rent divided by the purchase price or current valuation.
Missing figures are left blank. They are not treated as zero. Zero monthly contracted rent on a positive valuation produces annual rent of £0.00 and a 0% gross yield. A zero valuation cannot produce a yield.
This is gross yield, before expenses, financing and tax. It is not a net yield, a profit forecast, or tax advice.
Worked example
- Purchase price or current valuation: £200,000.00
- Monthly contracted rent: £1,000.00
- Annual contracted rent: £12,000.00
- Gross yield: 6%
Give your tenants another way to pay rent
Eligible tenants can pay rent by card, Apple Pay or Google Pay through PaymentFlux, when the recipient is supported. You receive the rent by bank transfer, with no card checkout to set up.
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Common questions
Monthly contracted rent is multiplied by 12. That annual rent is divided by the purchase price or current valuation. £1,000 a month on a £200,000 value is a 6% gross yield. Zero monthly contracted rent on a positive valuation is a 0% gross yield. An empty rent field is not treated as zero.
No. Gross yield is before expenses, financing and tax. Use the rental cash-flow calculator if you want a forecast of cash left after those cash costs. That forecast is still before tax.
Either. Label the figure for yourself as the price you paid or a current valuation. The calculator uses the number you enter. An empty field is not zero, and a zero value cannot produce a yield.
PaymentFlux helps eligible customers pay rent by card when a supported landlord, letting agent or property manager does not accept cards directly. Not every recipient is supported. This calculator does not check eligibility.
Pay rent by card
PaymentFlux helps eligible customers pay rent by card when a supported landlord, letting agent or property manager does not accept cards directly.