Gross yield and net yield are different
Gross yield divides a full year's advertised rent by the purchase price. Net yield first adjusts rent for your occupancy assumption and deducts the recurring property costs entered above. Mortgage payments are then shown separately because borrowing affects investor cash flow but not the property's operating yield.
What costs should landlords include?
Consider service charges and ground rent where applicable, landlord insurance, management, maintenance, safety checks, licensing, accountancy and an allowance for periods without rent. Large one-off works should be tested separately rather than hidden inside a precise-looking annual percentage.
Important limitations
This calculator does not estimate Income Tax, Corporation Tax, Capital Gains Tax, finance-cost relief, purchase tax or future property values. Tax treatment depends on ownership and personal circumstances. Results are planning estimates, not investment, mortgage or tax advice.
Reviewed by the Properties & Homes editorial team
Last reviewed: 14 August 2026.