Rental yield calculator

Looking at the gross rental yield of a property is vital for landlords to understand if a property will be a good buy-to-let investment. Our rental yield calculator below allows you to calculate the property yield based on property purchase price and monthly rental income.

It's wise to speak to local experts to find out potential rental income and how attractive a property is likely to be to tenants. As buy-to-let specialists with detailed knowledge of the Edinburgh letting market, we at ESPC Lettings can offer expert advice to help you when choosing a buy to let property.

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What is a rental yield?

The gross rental yield of a property is based on the rental income you will receive from letting out the property before any other costs have been deducted, such as maintenance and repairs, and the purchase price of the property.

Comparing the likely buy-to-let yields of different properties can help you decide which is right for you.

How do you calculate rental yield?

The most popular way of working out rental yield is to take the annual rental income of a property (actual or predicted) and divide it by the purchase price of the house or flat.

Rental yield formula

The formula for calculating the gross rental yield of a property is:

Gross rental yield = annual rental income/property purchase price 

Therefore, the calculation to work out a rental yield for a property costing £200,000 with an annual rental income of £9,600 would be:

Gross rental yield  = 9,600/200,000 = 0.048

This figure is multiplied by 100 to get the percentage, so the gross rental yield of this property is 4.8%. 

Make it easy for yourself, by using our simple and quick rental yield calculator below to work out potential property yields.

What is a good rental yield?

When choosing a rental property, ideally you want to invest in a buy-to-let property which offers the best possible rental yield. However, you will also want to take other factors into consideration, such as how attractive the property and area is to potential tenants.

The best way to work out if a property is a good investment is to speak to a local letting agent who are experts in the process. Based in the centre of Edinburgh, our team of letting experts can provide expert buy-to-let advice and help you choose the right property based on possible rental yield and many other factors.

ESPC Lettings

While our rental yield calculator can give you an idea of return on investment, it’s best to speak to an expert to get advice on purchasing a buy-to-let property and likely rent level.

As an expert letting agent in Edinburgh, ESPC Lettings offers buy-to-let advice, a full property management service along with property marketing and let only packages. Contact us today using the form below, emailing landlord@espc.com or calling 0131 253 2847.