How to use the Rental Yield Calculator (Lite): full video tutorial
Gross yield, net yield, cash-on-cash return and cashflow from a price and a rent. Free and educational, not advice.
▶ Play the tutorial (5:55)About this tutorial
A quick yield check on any buy-to-let. This full guide walks you through every box and result in the Property Clues Rental Yield Calculator (Lite), using a worked example: a £180,000 property let at £950 a month with a 25% deposit.
What you'll learn
- Gross yield and net yield, and what counts as a good figure
- Cash-on-cash return on the deposit and stamp duty
- Monthly cashflow before and after tax with an interest-only mortgage
- Where the rent goes each month, and Section 24 relief
- The at-a-glance checks, and saving calculations
Chapters
- 6.3% yield, but −£6 a month after tax (example)
- Finding your way around
- The property and mortgage
- Running costs and tax
- The four results
- Where the rent goes
- Gross and net yield explained
- Cash-on-cash and the cash you need
- What if the mortgage rate drops?
- What if the rent goes up?
- What if you pay basic rate tax?
- Common mistakes to avoid
- At a glance and recap
Figures in the video are a worked example. Property Clues tools are educational calculators and checklists, not financial, tax, mortgage or legal advice. Speak to a qualified adviser about your own situation. The voice in the video is AI-generated.