Calculators
Yield & ROI Calculator
Yield tells you what a property pays you each year. Total return adds what the property itself gains in value. Model both below, then read how the numbers actually work.
Gross yield
6.0%
NET yield
5.0%
Annual rental income£15,000
NET income after costs£12,600/yr
Rental income over 5 years£63,000
Estimated value after 5 years£304,163
Capital appreciation£54,163
Total return on investment
47%
£117,163 over 5 years, c. 9.4% per year combining income and growth
Illustration only, before tax, voids and purchase costs; assumes constant rent and steady growth. Not financial advice.
How to Work Out a Yield
Gross yield is the simplest measure: a year's rent divided by the purchase price.
NET yield is the number that matters: it deducts your running costs, service charge, ground rent, management fees, before dividing by the price. It's what actually lands in your account.
Live Examples From Our Portfolio
- Phoenix, Leeds, a one-bed at £203,933 letting at £995/month: £11,940 a year ÷ £203,933 = 5.9% gross. Tenanted on day one, so the yield starts paying immediately. View Phoenix →
- The Forge, Liverpool, a one-bed at £206,000 with £1,100/month estimated rent: £13,200 ÷ £206,000 = 6.4% gross, with the furniture pack included in the first release. View The Forge →
Where Capital Appreciation Comes In
Yield is only half your return. The other half is what the property gains in value while you own it, capital appreciation. It compounds: 4% growth on a £250,000 apartment is £10,000 in year one, but by year five the same 4% is worth over £11,600, because it's 4% of a bigger number.
Your total return on investment combines the two: rental income collected over your hold period, plus the uplift in value when you sell or refinance. A 6% NET yield with 4% annual growth is a total return of roughly 10% a year, which is why regional cities where prices are still rising (Savills forecasts 25% for the North West by 2030) can outperform higher-priced markets with stronger yields than London and growth on top.
Two practical notes. First, growth forecasts are forecasts, model conservative and optimistic cases, not just the headline number. Second, leverage changes everything: if you buy with a 75% mortgage, the growth accrues on the full property value while your cash in is a quarter of it, amplifying returns (and risk) on the way up.
Want these numbers run properly against a real development, including mortgage costs, stamp duty and tax structure? Schedule a call with one of our specialists.