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Buy-to-Let Yield Calculator

See gross yield, net yield, monthly cashflow and return on deposit for any UK buy-to-let property — before you commit.

1

Enter property & rent figures

Add the purchase price, expected monthly rent, and your mortgage details.

2

See gross yield, net yield & cashflow

Instantly see whether the investment stacks up — before you make an offer.

3

Get a specialist BTL mortgage quote

Send us your figures and we'll match you with a lender — even with adverse credit.

Property & Mortgage Details

Expected gross rent per month

LTV: 75.0%

Gross p.a. — not monthly

Annual Running Costs

Typically 8–15% for fully managed

Insurance, maintenance, voids, etc.

This calculator provides an estimate only. Actual rates, costs and returns will vary. Does not include stamp duty, legal fees, or tax implications. Seek independent financial and tax advice before investing.

Negative monthly cashflow of £36 — this property is not cash-flow positive at these figures.

Yield Summary

Gross Yield

5.28%

Net Yield

3.95%

Deposit (cash in)£62,500
LTV75.0%
Annual running costs£3,320
Monthly mortgage£859
Monthly cashflow-£36
Annual cashflow-£433
Return on deposit-0.69%

How buy-to-let yields are calculated

Gross yield vs net yield

Gross yield is the simplest measure — annual rent as a percentage of the property value, before any costs.

Net yield deducts running costs (agent fees, maintenance, insurance, void periods) before dividing by property value. Net yield is the more realistic number — a property showing 7% gross may only return 4.5% net once costs are factored in.

Gross yield(Annual rent ÷ Property value) × 100
Net yield((Annual rent − Annual costs) ÷ Property value) × 100

What counts as a good BTL yield?

There is no universal answer — it depends on your strategy, financing costs, and location. As a rough guide for 2025:

Below 4% gross

Low yield — common in London/South East. Capital growth-led strategy.

4%–6% gross

Average for most UK towns and cities.

6%–8% gross

Good yield — typical in northern England, Midlands.

Above 8% gross

High yield — HMOs, student lets, some northern cities.

Figures are indicative. Yields will vary based on purchase price, local rents and running costs. Always model net yield and cashflow, not just gross yield.

Interest only vs repayment for BTL

Most BTL mortgages are taken on an interest-only basis. This maximises monthly cashflow because you are only paying interest — not reducing the capital balance. At the end of the term, you repay the loan in full, typically by selling the property or refinancing.

Repayment mortgages are less common for BTL but some investors prefer them — particularly those approaching retirement or wanting to build equity systematically. Monthly payments are significantly higher, which reduces cashflow but builds equity over time.

BTL mortgages with adverse credit

If you have CCJs, defaults, a late payment history or a previous IVA, mainstream lenders will likely decline you. Specialist BTL lenders on our panel take a different approach — they assess the rental income, the property, and your overall situation rather than relying solely on a credit score.

A strong yield, a good quality property, and a clean rental history can all improve your chances. Use the enquiry form above to tell us your situation and we will match you with the most suitable lender — at no upfront cost.

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