Rental Yield Net of Costs Calculator
True rental yield after management, maintenance, void, and insurance costs.
Calculate net rental yield after all landlord costs — management, maintenance, voids, insurance — the honest yield, not the gross headline.
What this tool does
This calculator models the income you actually retain from a rental property after deducting common operating costs. It takes your property value, annual gross rent, and five cost factors—management fees (as a percentage of rent), annual maintenance spending, vacancy allowance (as a percentage of rent), and insurance—then calculates what percentage return these costs leave you with. The result shows your net rental yield: the annual income expressed as a percentage of property value, after landlord expenses are subtracted. Management fees and vacancy rates typically have the largest impact on the final yield. The calculation is useful for comparing properties side-by-side or understanding how cost changes affect actual returns. Note that this model does not account for income tax, mortgage payments, capital appreciation, or local property taxes, and treats maintenance and insurance as fixed annual amounts rather than variable costs.
Enter Values
People also use
Real Estate
Rental Yield Calculator
Calculate gross and net rental yield from property value, annual rent, and operating expenses to compare income potential across properties.
Real Estate
Property Investment Calculator
Calculate property investment ROI from price, deposit, rent, expenses, appreciation, and holding period — the standard buy-to-let return number.
Real Estate
Rental Income Calculator
Calculate monthly net rental income after mortgage payment, property taxes, maintenance reserve, vacancy allowance, and management fees.
Formula Used
Spotted something off?
Calculations or display — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
300,000 property with 18,000 gross rent (6% gross yield). Subtract 10% management (1,800), 1,500 maintenance, 5% void (900), 400 insurance: net rent 13,400, net yield 4.47%. The 1.53 percentage point difference looks small but is 25% of the gross yield — it matters enormously over decades.
How to use it
Enter property value, annual gross rent (12 months full occupancy), agent management fee percentage, annual maintenance estimate (0.5-2% of property value typical), and expected vacancy percentage.
What's still excluded
Tax, mortgage interest, and capital expenditure (new roof, boiler). These are individual-specific. For true return on equity, run the tool then subtract tax rate and add mortgage amortisation math.
Run it with sensible defaults
Using property value of 300,000, annual gross rent of 18,000, management fee of 10%, annual maintenance of 1,500, the calculation works out to 4.47%. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Property Value, Annual Gross Rent, Management Fee %, Annual Maintenance, and Vacancy Rate — do not pull with equal force.
How the math works
Net rent equals gross rent minus: management fee (% of rent), maintenance, vacancy (% of rent), and insurance. Net yield is net rent divided by property value. Excludes tax and mortgage costs.
Where this fits in planning
This is a "what-if" tool, not a forecast. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.
What this doesn't capture
Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. The number represents one scenario rather than a forecast.
After accounting for management, maintenance, vacancy, and insurance costs on a £300,000 property generating £18,000 annually, your net rental yield is 4.47%.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes net rental yield by first deducting all operating costs from annual gross rent. Management fees are applied as a percentage of gross rent; vacancy is treated as a percentage reduction in rent collected; maintenance and insurance are entered as fixed annual amounts. These four cost categories are summed and subtracted from gross rent to derive net annual rent. Net yield is then calculated by dividing net rent by property value and expressing the result as a percentage. The model assumes constant rental income and costs throughout the period, with no variation in vacancy rates or fee structures. It does not account for capital appreciation or depreciation, mortgage payments, property tax, income tax on rental earnings, or timing effects within the year.
References
Frequently Asked Questions
What's a good net yield?
Realistic vacancy?
Maintenance estimates?
Does this include mortgage?
Related Calculators
Rental Yield Calculator
Calculate gross and net rental yield from property value, annual rent, and operating expenses to compare income potential across properties.
Property Investment Calculator
Calculate property investment ROI from price, deposit, rent, expenses, appreciation, and holding period — the standard buy-to-let return number.
Rental Income Calculator
Calculate monthly net rental income after mortgage payment, property taxes, maintenance reserve, vacancy allowance, and management fees.
More Real Estate Calculators
Real Estate
After Repair Value (ARV) Calculator
Calculate real estate flip profit with after-repair value, repair costs, and the 70% rule check — the standard wholesaler maths.
Real Estate
Farmland Annualised Return Calculator
Estimate the annualised farmland return from lease yield and appreciation. Geometric-mean approximation — not a true cash-flow IRR.
Real Estate
BRRRR Calculator
Calculate BRRRR strategy returns by modeling purchase price, rehab costs, ARV, refinance LTV, and rent to estimate recycled cash and cash-on-cash return.
Real Estate
Buy-to-Let Calculator
Calculate buy-to-let ROI by combining rental yield and property appreciation over your chosen hold period. Enter price, rent, and expenses to get started.
Real Estate
Buy-to-Let Mortgage Stress Test Calculator
Stress test a buy-to-let mortgage against typical lender DSCR requirements — see if rents cover interest at stressed rate scenarios.
Real Estate
Buy-to-Let vs Savings Calculator
Compare BTL property returns vs high-yield savings over time. Enter investment capital and savings interest rate to see to high-yield savings.
Explore Other Financial Tools
E-commerce & Marketplace
MOQ Calculator
Calculate the minimum order quantity needed to recover tooling costs and hit a target profit margin with this MOQ calculator.
Green & Sustainable Finance
Heating System Comparison Calculator
Compare lifetime cost of gas boiler vs heat pump vs electric heating. See full ownership cost over typical 15-year lifespan.
Digital Nomad & Freelance
Freelance Burnout Risk Meter
Assess freelancer burnout risk by analyzing workload, income stress, client diversity, and work-life balance metrics. Identify sustainability concerns.