Guides4 min read
How to calculate rental yield on a UK buy-to-let
Use gross yield to shortlist listings, then net yield once you have rent, costs, and finance — before you book a viewing.
Gross yield is annual rent divided by the purchase price. It is a shortlist number, not a buy decision.
Net yield subtracts operating costs. A 7% gross listing can be closer to 4% once agency fees, insurance, and voids are included.
Asking rent is not achieved rent. Compare the listing figure with local lets, not the agent’s target.
Gross and net answer different questions. One ranks the pile; the other tests whether the property still works after costs.
Run two listings on the same calculator so purchase price, rent, and expenses share one set of assumptions.