Rental yield calculator

How the rental yield calculator works

We work out the gross yield as the annual rent divided by the price, expressed as a percentage. The net yield deducts the annual running costs from the rent first, then divides by the price, so it reflects what you keep after insurance, management, repairs and any non recoverable costs. The annual net income is simply the rent minus those costs.

The formula is gross yield equals annual rent divided by price multiplied by one hundred. Net yield equals annual rent minus annual costs, divided by price, multiplied by one hundred. Leave costs at zero if you only want the gross figure.

Gross versus net, and where industrial sits

Gross yield is the headline most agents quote, but net yield is the honest figure once a building carries costs the tenant does not cover. On industrial and logistics, prime UK yields have sat around 5 to 6 percent, with secondary stock priced higher to reflect risk. According to Knight Frank as at December 2025, prime logistics held in that range, which gives useful context when you compare a deal. A yield well above the prime range usually signals something to check on the tenant, the lease or the unit. To see how the rent supports a loan, use our how much can I borrow calculator.

Worked example

On a 1 million pound warehouse let at 75,000 pounds a year, the gross yield is 7.50 percent. Deduct 8,000 pounds of non recoverable costs and the annual net income is 67,000 pounds, giving a net yield of 6.70 percent. That sits above prime industrial, so we would look closely at the covenant and lease before treating it as a bargain.