Quick answer
Work out gross and net rental yield for 2026/27 by factoring in purchase price, annual costs and void periods, before comparing property investments. It uses the rates and thresholds HMRC has published for 2026/27 (Gross yield is annual rent divided by purchase price; net yield deducts annual running costs and an allowance for void weeks before dividing by price). Worked example: with purchase price (including costs) £220,000, expected monthly rent £1,100, annual running costs (insurance, maintenance, management) £1,800, the result is net rental yield 5.0% and gross rental yield 6.0%. Free to use, no sign-up, from LimitedCompany.Accountants (ICAEW-regulated ACCOTAX).
Before a landlord commits to a purchase, this calculator turns rent, price and running costs into a clear gross and net yield figure, making it easier to compare one property against another on a like-for-like basis.
The rental yield calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Gross yield is annual rent divided by purchase price; net yield deducts annual running costs and an allowance for void weeks before dividing by price. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under property & landlord. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last checked against HMRC rates: 12 September 2026 (2026/27 tax year). Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
Result, 2026/27
Net rental yield
Gross rental yield
Effective annual rent after voids
Net income after costs
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
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Book a free general call WhatsApp usBook technical advice (paid)Gross rental yield is simply the annual rent divided by the purchase price, expressed as a percentage, and is the figure most commonly quoted by estate agents because it needs no information about running costs.
Net rental yield is a more realistic measure. It starts from expected annual rent, reduces it for likely void periods when the property sits empty between tenancies, then deducts annual running costs such as insurance, maintenance, letting agent fees and service charges, before dividing the result by the purchase price.
This calculator assumes voids are spread evenly across the year as a proportion of 52 weeks, and that the purchase price you enter already reflects the total capital committed, including Stamp Duty Land Tax and legal fees, so the yield reflects the real return on money invested.
Two properties advertised at the same gross yield can produce very different actual returns once service charges, ground rent, letting agent commission and realistic void periods are taken into account, particularly for flats with high service charges or properties in areas with higher tenant turnover.
Comparing net yield across several potential purchases, using consistent assumptions for costs and voids, gives a much fairer basis for deciding between properties than relying on the headline gross figure alone.
Rental yield is a cash-on-cash measure of income return and says nothing about capital growth, mortgage interest costs, or the income tax due on rental profit, all of which affect the true return on a leveraged purchase.
A landlord using a mortgage should also run the figures through a rental income or Section 24 calculator, and factor in interest rates, before treating a headline yield figure as the whole picture on affordability or profitability.
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
This varies enormously by region and property type. Many investors look for a net yield of 5% to 8% depending on location, tenant type and mortgage costs, but a lower yield can still make sense where capital growth prospects are stronger.
Gross yield divides annual rent by purchase price with no other adjustments. Net yield goes further, deducting running costs and an allowance for void periods, giving a more realistic picture of actual return.
Yes, for a meaningful yield figure, the purchase price should reflect the total capital committed, including SDLT, legal fees and any refurbishment costs, since these all reduce the effective return on the money invested.
No. Yield is a cash income measure based on the purchase price, not the amount of any mortgage. Mortgage interest and its tax treatment need to be assessed separately using a rental profit or Section 24 calculator.
Keep going
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