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Free tool for landlords

Rental yield calculator

Enter a price and a postcode. See your gross yield from typical local rents, and how it compares with homes on sale near you.

Reviewed October 2026

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Typical 2-bed gross yields right now

Median 2-bed asking rent × 12 over median 2-bed asking price, home.co.uk, November 2026.

Typical 2-bed asking rent and gross yield by city, November 2026
City2-bed asking rentGross yield
London £2,175 pcm 8.3%
Manchester £1,300 pcm 6.9%
Birmingham £1,250 pcm 6.4%
Leeds £1,100 pcm 6.7%
Bristol £1,450 pcm 6.4%
Edinburgh £1,400 pcm 7.3%

How it works

  • Painted house icon: rents by bedrooms Rents by bedroomsThe median asking rent for your size of home in your postcode district, widening only when it must.
  • Painted house icon: your yield, and the local norm Your yield, and the local normYearly rent ÷ your price × 100, beside each size's rent over its own asking price.
  • Painted house icon: dated and honest Dated and honestEvery figure shows its date. Sizes with fewer than 20 homes advertised are left out.

Sources

Common questions

How do you calculate rental yield?
Gross rental yield is the yearly rent divided by the price of the home, multiplied by 100. A home bought for £240,000 that lets for £1,000 a month earns £12,000 a year, a gross yield of 5%.
What is the difference between gross and net yield?
Gross yield uses the rent alone. Net yield takes your yearly running costs, such as letting fees, insurance, repairs, service charge and ground rent, off the rent first. Add your costs in the calculator to see both.
Where do the rents and prices come from?
They are the median asking rents of homes advertised to let, and the median asking prices of homes for sale, on home.co.uk in the postcode district, for each number of bedrooms. Rents are rounded to the nearest £25. They are asking figures, not signed tenancies or completed sales. A size with fewer than 20 homes is left out, and a district with too few homes to let widens to 5 or 10 miles around it and says so.
What is a good rental yield?
It depends on the area. Where house prices are high, yields tend to be lower, because rents do not rise as fast as prices. The calculator shows the typical yield for each size of home in your district, from its own asking rents and asking prices, so you can see whether your price gives more or less rent per pound than the local norm.
Does the yield include buying costs, mortgage or tax?
No. Gross yield uses the purchase price only. Stamp Duty, legal fees, mortgage payments and tax are not included. Our landlord tax calculator shows the tax on rental profit after the mortgage interest restriction.

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