Use this yield calculator for your buy to let investment properties to make sure you’re going for the right kind of deals.
You can use it to calculate net rental yield and gross rental yield for any potential properties you want to analyse.
Rental Yield Calculator (Gross & Net) 💰
What’s the Difference Between Gross Rental Yield and Net Rental Yield
Gross rental yield looks at just the revenue brought in from the property, but it doesn’t take into account any costs besides the purchase price.
Net rental yield considers all costs associated with the property on a yearly basis, this is the actual rental profit you’ll be making from the property.
Gross Rental Yield Formula
Gross Rental Yield = (Annual Rental Income / Property Value) x 100
Net Rental Yield Formula
Net Rental Yield = [(Annual Rental Income – Annual Expenses) / Property Value] x 100
Costs can include things such as property management fees, maintenance costs, property taxes, insurance, and any other relevant expenses.
Net rental yield is always a better metric to compare in my opinion because it takes into account more information.
For example, you might have a really high gross yield but the property might have very high maintenance costs which could make the net rental yield measly.
What Properties Have the Best Rental Yield?
The Property Beacon we ran a simple study to figure out how many bedrooms are best for rental yield. We were surprised by our findings.