United Kingdom · Tools
Rental yield calculator: gross and net
What a UK buy-to-let really returns once service charge, management, voids and stamp duty are counted. Set up for a typical Manchester apartment; change any figure.
Gross 6.5% · net on price 4.6%
| Rent, a year | £16,200 |
|---|---|
| Voids | −£623 |
| Management | −£1,869 |
| Service charge and other costs | −£2,125 |
| Net rent before tax | £11,583 |
| Stamp duty (additional home) | £20,000 |
| Total cost to buy | £273,000 |
Defaults are an illustration, not a forecast for any property. Stamp duty is calculated at the rate for an additional home.
Reading the result.
Most yield figures you see quoted are gross. A typical £250,000 apartment letting at £1,350 a month shows 6.5% gross; after service charge, management, voids and upkeep it nets about 4.6% on the price, and about 4.2% once a non-resident’s stamp duty and purchase costs are added to the cost. Use the net figure to compare properties and cities.
For current Manchester rents and prices by area, read Manchester rental yields; for the UK picture, see UK rental yields. To check the stamp duty on its own, use the stamp duty calculator.
Rental yield questions
What is the difference between gross and net rental yield?
Gross yield is a year of rent divided by the price. Net yield takes off the costs of owning and letting first: service charge, management fees, voids, insurance and maintenance. Net on total cost also adds stamp duty and purchase costs to the price. Net is what you actually earn.
What is a good rental yield in Manchester?
Manchester averages about 6.5% gross on ONS figures for 2026. For a city-centre apartment, a net yield of 4% to 5% on the price, after service charge and management, is a sound result for a well-located building.
How much is the service charge on a Manchester apartment?
It depends on the building. Simple blocks cost far less per square foot than towers with concierge, pools and several lifts. Always ask for the budget and the last three years of accounts before reserving, because the service charge is the biggest swing factor in net yield.
Should I include stamp duty in my yield?
Yes, as a cost of buying. A non-resident investor pays up to 7% on top of standard stamp duty, which is a real part of the money invested. Its effect on yield fades the longer you hold.
Does this calculator include income tax?
No. It shows yield before tax, because tax depends on your circumstances. From April 2027 UK property income is taxed at 22%, 42% or 47%, and non-resident landlords have 20% withheld at source unless HMRC approves them to receive rent gross.
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