2024-02-22: Our Chrome extension for calculating gross rental yield now supports OnTheMarket.com properties.
2024-02-20: The Rental Yield Calculator Chrome extension now supports Rightmove.co.uk properties.
2023-09-16: You can now calculate gross rental yield while viewing any web page using our Chrome extension! When viewing a Zoopla.co.uk property it will automatically use the property's price.
Use our calculator to work out your rental return. It works out gross and net annual rental yield as you type. There are three easy steps to follow:
The calculator will automatically display the annual rental yield. It's important to keep in mind that while the tool provides a reliable approximation, actual rental yields can vary based on real market conditions.
Rental yield is a metric that lenders, letting agents and investors use to determine potential return on investment from a rental property. To calculate the annual rental yield, follow these steps:
To calculate the annual rental income simply multiply the monthly rent by 12. For example, if the monthly rent is £1,500, the annual rental income would be £18,000.
Determine the property value. You can use either the purchase price or the current market value. For example, if the property is valued at £300,000, use that value for the calculation.
Divide the annual rental income by the property value and multiply by 100 to get a percentage. For example, if the annual rental income is £18,000 and the property value is £300,000, the annual rental yield would be 6%.
By calculating the annual rental yield, you can determine the potential return on investment for a rental property. This information can be helpful in determining if a property is a good investment opportunity or not. It is important to note that this calculation does not take into account expenses such as property taxes, insurance, and maintenance costs, which can affect the overall profitability of the investment.
You've probably seen the terms "rental yield" and "rental return" used almost interchangeably. But what do they mean?
Yield and return are two ways to measure how profitable an investment is over a certain period, usually a year. Yield is the income the investment makes over time, usually shown as a percentage. On the other hand, return is the amount of money gained or lost from the investment over time, usually shown as a dollar value.
Key Points:
Both yield and return show how well an investment performs over a certain time, but they use different methods.
Yield is the money an investment earns during a period, usually shown as a percentage.
Return is how much money an investment gains or loses over time, shown as the difference in the investment's dollar value.
Yield looks ahead, while return looks back.