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Work out the gross and net rental yield on a UK property, after running costs, void weeks and stamp duty.
Gross yield
6.00%Annual rent ÷ purchase priceNet yield
3.98%After running costs, voids and stamp duty£1,500 a month on a £300,000 property gives a 6.00% gross yield, and a 3.98% net yield after running costs, void weeks and stamp duty.
Example figures.
Rates as of
Rental yield shows the rent a property earns as a percentage of what it cost to buy. Gross yield is a quick way to compare properties; net yield is closer to what you keep.
Buy an additional property in England for £300,000 and let it for £1,500 a month. Allow £2,500 of other purchase costs, a 12% letting fee, £1,200 service charge, £300 insurance, £900 maintenance and 2 void weeks a year.
The SDLT step uses the GOV.UK rates linked in the sources. The rent and costs are illustrative, not market data.
The SDLT estimate assumes one residential purchase by an individual in England or Northern Ireland who already owns a home, so the additional-property surcharge applies. It uses the rates in force from 1 April 2025.
| Portion of purchase price | Standard | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| Above £125,000 to £250,000 | 2% | 7% |
| Above £250,000 to £925,000 | 5% | 10% |
| Above £925,000 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
Higher rates are not applied below a £40,000 purchase price. The yield bars do not indicate a good or bad yield.
Not included: mortgage payments, income tax, capital growth, rent changes during the year, reliefs, the surcharge for buyers who are not UK resident, company or trust purchases, linked transactions, shared ownership and tax on lease rent.
Stamp Duty Land Tax applies to residential property bought in England and Northern Ireland. GOV.UK publishes the bands and the 5% surcharge on top of each band for buying an additional property.
Scotland has its own tax, Land and Buildings Transaction Tax, collected by Revenue Scotland. Wales has Land Transaction Tax, collected by the Welsh Revenue Authority. Both have their own rates and extra charges for additional homes, so this version asks you to enter the amount.
Speak to an accountant or tax adviser before you rely on this estimate if:
Multiply the monthly rent by 12, divide by the purchase price and multiply by 100. That is gross yield. For example, £1,500 a month on a £300,000 property is £18,000 a year, a gross yield of 6.00%. For net yield, take off rent lost to void weeks and your running costs, then divide by the price plus stamp duty and other buying costs.
A 7% gross yield means a year of rent equals 7% of the purchase price, before any costs. Whether that suits you depends on your running costs, mortgage, void weeks and goals, so compare net yields as well. This calculator does not label any yield as good or bad.
A 5.6% gross yield means £5.60 of rent a year for every £100 of purchase price, before costs. Net yield will be lower once running costs, void weeks and stamp duty are included. Compare properties on the same measure. This calculator does not set a good or bad threshold.
Gross yield compares a year of rent with the purchase price and ignores costs. Net yield takes off rent lost to void weeks and running costs such as the letting fee, service charge, insurance and maintenance, then divides by the total purchase cost: the price plus stamp duty and other buying costs. In our worked example, gross yield is 6.00% and net yield is 3.98%.
It does not change gross yield, which uses the price alone. It lowers net yield, because stamp duty is part of the total purchase cost. In our worked example, £20,000 of SDLT, including the additional-property surcharge, is part of a £322,500 total purchase cost.
Tax rules can change. Confirm the treatment of your purchase using the official guidance.
See what remains after running costs, mortgage payments and income tax.
Understand mortgage interest relief and compare two tax years.
Compare annual income using your own rent, occupancy and costs.
Turn weekly rent into gross and net yield after running costs, vacancy and stamp duty.
