Rental Yield Calculator

Compute gross and net rental yield on a buy-to-let — properly accounting for voids, agent fees, maintenance, insurance, and ground rent. The honest number that pays your bills.

Last reviewed May 2026 by Vanta Calc editorial

Result

Net rental yield

5.03%

Gross yield 6.72% · Net 5.03%

≈ $1,082/mo cashflow

How we got here

Annual rent = $1,400 × 12 = $16,800

Effective rent (after 2wk voids) = $16,800 × 0.962 = $16,154

Agent fees = $16,154 × 10.0% = $1,615

Total running costs = agent + maintenance + insurance + ground rent + other = $3,165

Net annual income = $16,154 − $3,165 = $12,988

Gross yield = $16,800 / $250,000 = 6.72%

Net yield = $12,988 / $258,000 = 5.03%

Summary

Gross yield6.72%

Net yield5.03%

Annual rent (full)$16,800

Effective rent (after voids)$16,154

Total running costs$3,165

Net annual income$12,988

Net monthly cashflow$1,082

Total acquisition cost$258,000

Calculation Complete

Gross yield is the headline number that property listings and agents quote — annual rent as a percentage of price. Net yield is the number that pays your bills: rent minus voids, agent fees, maintenance, insurance, ground rent and the running costs that landlords actually face. The gap between them is usually 1.5–3 percentage points.

Enter the property price plus realistic acquisition costs (transfer / stamp duty, legal, broker, survey). Add the monthly rent and the costs of running the property: agent fees as a percentage, maintenance as a $ figure (1% of value is a common rule of thumb), insurance, ground rent / service charge if leasehold, and any other annual costs (HOA dues, certificates, accountancy). Voids are typically 2–4 weeks per year — don't model 0 unless you've done it for several years already.

Examples

$250k property, $1,400/month, 10% agent fee, 2-week void

Annual rent $16,800. Effective $16,154 after voids. Running costs ≈ $3,165 (agent $1,615 + maint $1,200 + insurance $350). Net $12,989. Gross yield 6.7%, net yield 5.0% on $258k total acquisition cost.

Self-managed, no voids, leasehold / condo with HOA

Removing the agent fee adds back ~$1,600/year. Adding $1,800 service charge / HOA on a leasehold flat or condo removes ~$1,800. The two roughly cancel, but the net yield difference between freehold houses and managed buildings is real and structural.

Frequently Asked Questions

What is a "good" net yield?

As of 2026, 5–6% net is solid for a stabilised single-let in most mature markets. Below 4% and you are betting on capital appreciation. Above 8% net usually means HMO / multi-let, secondary cities, or higher-risk tenant profiles — investigate why.

Should I include the mortgage in net yield?

No. Yield measures the property; cash-on-cash return measures the deal. Mixing them obscures whether a low yield is a leverage problem or a property problem. Compute yield first, then layer on the mortgage cost separately to get cash-on-cash.

Why use total acquisition cost in the net yield denominator?

A $250k property that costs $258k after closing costs has $258k of capital tied up. Using only the $250k headline overstates yield by ~3%. Total acquisition cost is the honest denominator.

What void weeks should I assume?

2 weeks is optimistic for a stabilised property in a strong market, 4 weeks is more typical, 6+ weeks for student-let or seasonal areas. New-build flats with high stock churn tend toward the higher end. Voids also include re-letting downtime, not just unhappy tenants leaving.