Working out rental yield will help you calculate profit from buy to let properties.
How to use the rental yield calculator
Be aware that your actual return on investment will vary depending on a variety of factors and your personal circumstances.
How you can calculate the different types of rental yields and returns for buy to let
There are a number of ways in which you can calculate rental yield from a property.
‘Yield’ is a term used to describe the return on the cash invested into an asset or other investment vehicles – in this case, a rental property – and is expressed as a percentage.
Select the type of yield you wish to calculate from the menu, add the required information and click ‘calculate’.
Gross yield is your return on investment before deducting taxes and expenses.
Net yield is your annual return after such expenses are taken into account.
Your ‘real’ yield is your net return on investment plus capital appreciation, giving a truer indication of the investment’s performance.
Finally, your true rate on the return is your annual yield against the total amount of capital invested thus far – this includes purchasing costs, running costs and the total amount of Buy to Let mortgage repayments made.
You can work out the rental yield for an HMO property:
Add up the rental income from all the rooms
Put this into the monthly rent box on the calculator