Rental Yield CalculatorGross and net rental yield for buy-to-let and investment property, in the UK, Australia and the US
Enter the price and rent, weekly, monthly or yearly, and see your gross yield, your net yield after every running cost, and your cash yield if you use a mortgage. Each result is checked against the latest UK, Australian and US yield data, and the calculator also finds the rent or price you need to hit a target yield.
By Manzoor Ahmad · 13+ years of web development & SEO experienceUpdated October 20, 2026 with Paragon, Cotality and ATTOM data
Price & rent Annual rent: —
Buying costs Total: —
Running costs Total: —
Mortgage Optional, for cash yield
Your yield against the market
Your gross and net yield on a scale with the latest regional averages.
From gross to net: where the yield goes
Each running cost takes a slice of your gross yield, measured in percentage points of the price.
Hit a target yield
The rent you’d need at this price, or the most you could pay at this rent, for each gross yield.
| Target gross yield | Rent needed | Max price at your rent |
|---|
How to calculate rental yield
Rental yield is a property’s annual rent expressed as a percentage of what it cost. It’s the quickest way to compare the income from different properties, whatever their price, in any country.
Annual rent ÷ property price × 100The headline figure agents and portals quote. It ignores all costs, so it’s best for a quick first comparison.
(Annual rent − running costs) ÷ (price + buying costs) × 100What the property actually earns after agent fees, maintenance, voids, insurance and charges. This is the yield to make decisions on.
(Net income − mortgage costs) ÷ cash invested × 100Your return on the deposit and buying costs you put in. Investors in the US often call this cash-on-cash return.
To convert weekly rent to annual rent, multiply by 52; for monthly (pcm) rent, multiply by 12. So £1,150 per calendar month is £13,800 a year, and A$650 per week is A$33,800 a year. A common mistake is multiplying weekly rent by four and then by 12, which gives only 48 weeks.
Rental yield examples in three markets
- Annual rent£13,800
- Gross yield6.13%
- Running costs (agent 12%, maintenance 5%, 2 void weeks, insurance, certificates)£3,437
- Buying costs (SDLT £13,250 + £2,500)£15,750
- Net yield4.30%
- Annual rentA$33,800
- Gross yield4.51%
- Versus the national average3.7%
- Versus Sydney / Darwin3.3% / 6.1%
- Main costsManagement, council rates, insurance
- Annual rent$28,800
- Gross yield8.23%
- Lowest-yield US counties3.1%
- Highest-yield US counties14.5%
- Main costsProperty tax, insurance, management
What is a good rental yield in 2026?
“Good” depends entirely on where you’re buying. High-price markets offer low yields but historically stronger price growth; cheaper areas pay more income with more risk.
United Kingdom
7.02%
Average gross buy-to-let yield, end of Q2 2026 (Paragon)Australia
3.7%
National gross yield, all dwellings, June 2026 (Cotality)United States
3.1–14.5%
Potential gross yields on 3-bed homes across 416 counties, 2026 (ATTOM)As a rough guide, many UK investors look for a gross yield of 6% or more, and Australian investors are often content with 4%–5% in capital cities because they expect capital growth. US investors usually judge single-family rentals on cash flow and cap rate rather than gross yield. Yields fell in 55% of the US counties ATTOM tracked in 2026, as prices rose faster than rents.
Rental yield vs. cap rate, ROI and cash-on-cash
| Measure | Formula | Best used for |
|---|---|---|
| Gross yield | Annual rent ÷ price | Quick screening of listings, popular in the UK and Australia |
| Net yield | (Rent − running costs) ÷ total cost | Comparing true income between properties |
| Cap rate | NOI ÷ value | US and commercial valuation; close to a net yield on price |
| Cash-on-cash | Cash flow after mortgage ÷ cash invested | Leveraged return on your own money |
| DSCR | Rent (or NOI) ÷ mortgage payments | The US lender test; the counterpart of the UK buy-to-let interest cover ratio |
| Gross rent multiplier | Price ÷ annual rent | The inverse of gross yield: a GRM of 12.5 equals an 8% yield |
Is a higher rental yield always better?
Cheaper areas (Wales, Darwin, the US Midwest) pay more rent per pound or dollar invested, but prices often grow more slowly and tenant turnover, voids and repair bills can be higher.
Expensive cities (London, Sydney, Silicon Valley) yield 3%–5.5%, but investors buy for long-term price growth. Low yields can mean negative cash flow once a mortgage is added.
Total return is yield plus capital growth. For the full picture, including loan paydown and appreciation over your holding period, run the deal through the rental property calculator.
How to increase your rental yield
| Lever | How it lifts yield |
|---|---|
| Review the rent | Bring rent in line with the local market at each renewal, within any legal limits. Test the size of an increase with our rent increase calculator. |
| Cut void periods | Each empty week costs about 1.9% of a year’s rent. Market early and keep good tenants. |
| Renegotiate fees | Letting and management fees are often the biggest cost; tenant-find-only or self-managing can save 5–10 points of rent. |
| Add a room or furnish | An extra bedroom, a furnished let or an HMO can raise rent faster than value. |
| Buy below market | A lower price raises every yield measure; a refurbishment-and-refinance strategy is covered in the BRRRR calculator. |
| Try short-term letting | Holiday lets can earn more gross rent, but come with higher running costs, more management and local licensing restrictions; check the result still covers a loan with the DSCR calculator. |
Related property calculators
Find every tool for investing, renting and buying in our property and real estate calculators hub.
Rental yield questions
How do I calculate rental yield?
Divide the annual rent by the property price and multiply by 100 for the gross yield. For net yield, subtract annual running costs from the rent first and divide by the price plus buying costs.
What is a good rental yield in the UK?
The UK average gross buy-to-let yield was 7.02% at the end of Q2 2026, according to Paragon. Many investors aim for 6% or more gross; London averages about 5.6%, while Wales averages almost 8.9%.
What is a good rental yield in Australia?
The national gross yield was 3.7% in June 2026 (Cotality), ranging from 3.3% in Sydney to 6.1% in Darwin. Yields of 4%–5% are considered solid in most capital cities.
What is the difference between gross and net rental yield?
Gross yield uses rent before any costs. Net yield deducts running costs such as agent fees, maintenance, insurance, service charges and void periods, and usually divides by the total purchase cost including stamp duty and fees.
How do you calculate rental yield from weekly rent?
Multiply the weekly rent by 52 to get annual rent, then divide by the price. A$600 a week on a A$650,000 property is A$31,200 ÷ A$650,000 = 4.8% gross.
Should I include the mortgage in rental yield?
No. Gross and net yield are calculated without the mortgage so properties can be compared fairly. The effect of borrowing is shown by cash yield, also called return on cash or cash-on-cash return.
Is 5% a good rental yield?
It depends on the market. 5% gross is below the UK average but above the Australian national average, and low for most US single-family rentals outside expensive coastal areas.
What is a good net rental yield?
Net yields typically run 1.5 to 3 percentage points below gross yields. In the UK, a net yield of 4%–5% is usually regarded as healthy.
Does stamp duty affect rental yield?
It doesn’t change gross yield on price, but it lowers net yield when buying costs are included. Additional-property stamp duty in England adds a 5% surcharge to every band, which is about £13,250 on a £225,000 buy-to-let.
What is the interest cover ratio (ICR) for buy-to-let?
UK lenders typically want the rent to be 125%–145% of the mortgage interest, calculated at a stressed rate, often around 5%–5.5%. The calculator shows your rental cover and the largest interest-only loan your rent might support.
Is rental yield the same as cap rate?
They’re close relatives. Cap rate is net operating income divided by value, which is essentially a net yield on price; it’s the term most used for US and commercial property.
Is this rental yield calculator free and private?
Yes. It’s free, needs no sign-up and runs entirely in your browser. Nothing you enter is sent to DexoCalc or stored.
Manzoor Ahmad
13+ years of web development & SEO experience · Founder, DexoCalc
Manzoor builds and maintains every DexoCalc calculator, including the full property and investing libraries. This rental yield calculator adapts to UK, Australian and US conventions, from weekly and pcm rents to stamp duty, service charges and strata, and compares each result with current regional yield data.
Sources
Results are estimates for comparison and planning, not financial, tax or mortgage advice. Stamp duty is calculated using England and Northern Ireland additional-property rates; Scotland (LBTT/ADS) and Wales (LTT) differ. Lender criteria vary.