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Estimate net rental yield on a buy-to-let property using rent, purchase price, and yearly costs.
Use this buy to let calculator to compare rental properties quickly. Enter the purchase price, expected monthly rent, and annual operating costs to estimate gross and net yield before you move further into deal analysis. The calculator is designed to give a fast answer, but the quality of the answer still depends on accurate inputs and a clear idea of what decision you are trying to support.
- Enter Property Purchase Price, Monthly Rent, and Annual Property Costs using the same units you plan to compare or report.
- Read the main estimated net buy-to-let yield first, then use the supporting outputs to understand the trade-offs behind that result.
- Compare your numbers with the worked examples below if you want a quick reasonableness check.
Gross yield gives a quick first-pass property screen, while net yield shows a more realistic picture after recurring operating costs. On this page, the primary output is estimated net buy-to-let yield.
Scenario 1: $240,000 property rented at $1,650 per month with $4,200 annual costs. Inputs used: propertyPrice: 240000, monthlyRent: 1650, annualCosts: 4200. Example result: 6.50%. This buy-to-let scenario produces 6.50% net yield after accounting for annual property costs. Scenario 2: $325,000 property rented at $2,250 per month with $6,800 annual costs. Inputs used: propertyPrice: 325000, monthlyRent: 2250, annualCosts: 6800. Example result: 6.22%. A more expensive property with stronger rent still lands at 6.22% net yield once yearly costs are deducted.
Core formula: gross yield = annual rent / property price * 100; net yield = (annual rent - annual costs) / property price * 100. The calculator annualizes monthly rent, then compares that income with the property price before and after recurring operating costs.
- Gross yield ignores annual costs, while net yield includes them.
- Financing costs are usually evaluated separately from property operating yield.
Use this calculator when comparing rental properties, screening deals, or checking whether expected rent justifies the purchase price. Related paths for follow-up analysis include cap rate calculator, rental property calculator, rental yield calculator, and mortgage calculator.
Most bad outputs come from a few repeated input errors or interpretation mistakes. Use this short checklist before relying on the result.
- Ignoring annual costs and relying only on gross yield.
- Adding financing costs into an operating-yield comparison without a clear reason.
- Using peak or best-case rent instead of a realistic average monthly figure.
