Understanding a rental property’s return becomes much clearer when income, ownership costs and finance are considered together. This calculator brings those figures into one place so you can see how the property may perform across a full year.
Enter the property value, expected rent, vacancy allowance, management charges, annual expenses and loan details to estimate gross rental yield, net rental yield and cash flow after finance. The results also show operating income, loan repayments and the approximate weekly rent required to reach break-even cash flow.
Estimated Rental Return
- Potential rent at 52 weeks
- Vacancy allowance
- Estimated rent collected
- Total annual property income
- Management and letting costs
- Total operating expenses before finance
- Net operating income before finance
- Gross rental yield
- Net rental yield before finance
- Estimated loan repayments for the year
- Interest included in first-year repayments
- Principal repaid during the first year
- Annual cash flow after finance
- Average weekly cash flow after finance
- Estimated break-even weekly rent
Results are estimates before tax. They do not include purchase costs, depreciation, income tax, capital growth, major unplanned works, refinancing costs or changes in property value.
What The Rental Return Figures Mean
Gross rental yield compares a full year of rent with the property value before vacancy and operating expenses are applied. It provides a broad view of the income the property may produce relative to its value.
Net rental yield uses the estimated rent collected after vacancy, adds any other property income and subtracts management, letting and annual ownership costs. Finance is shown separately so the property’s operating performance can be viewed independently from its loan structure.
How Finance Is Calculated
An interest-only loan is calculated from the entered loan balance and annual interest rate. A principal-and-interest loan is estimated through monthly repayments over the remaining term, with the first year divided into interest and principal.
The break-even weekly rent estimates the rent required to cover the entered vacancy, management and letting charges, ownership costs and loan repayments. Changing any input updates the calculation immediately so different rental, expense and finance assumptions can be compared.
This calculator provides general estimates only. It does not consider individual tax circumstances, borrowing eligibility, future property values or financial objectives, and it does not provide financial, lending or tax advice.
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Disclaimer: Every effort has been made to ensure the accuracy of the information provided, but we make no guarantees regarding its completeness or reliability. The data is presented for general informational purposes only and does not constitute financial, investment, or legal advice. We are not liable for any errors, omissions, or consequences arising from its use. Users should verify details with relevant sources and seek professional advice where appropriate for the most accurate and up-to-date guidance.
