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Rental Yield Calculator (UK, 2026)

Calculate gross and net rental yield on a UK buy-to-let. Includes mortgage interest, running costs, Section 24 tax impact and true cash-on-cash return.

Purchase

Rent & voids

Running costs (annual)

Mortgage & tax

Yields

Gross

6.72%

Net (pre-tax)

5.48%

Cash on cash

0.44%

Annual breakdown

Gross rent
£16,800
Void loss
– £646
Effective rent
£16,154
Management fee
– £1,615
Other running costs
– £850
Mortgage interest
– £9,844
Income tax (Section 24)
– £3,507
Net cashflow (after tax)
£338

Notes

  • Section 24: mortgage interest is not deductible; you get a 20% tax credit instead.
  • Does not account for capital allowances, wear & tear, or Ltd-company structure.
  • Assumes interest-only BTL mortgage. Repayment mortgages reduce cashflow but build equity.

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