How Much Rent Should I Charge? Calculator
Work out a sensible monthly rent to charge as a landlord, based on your property value and target rental yield.
% per year (try 4-7%)
mortgage, insurance, upkeep
Suggested rent to charge
£1,041.67/mo
£12,500 a year at 5.0% gross yield
- At 4% gross yield
- £833.33/mo
- At 5% gross yield
- £1,041.67/mo
- At 6% gross yield
- £1,250.00/mo
- At 7% gross yield
- £1,458.33/mo
How landlords work out how much rent to charge
There is no single correct rent for a property, because the amount tenants will pay is set by the local market. But landlords need a starting figure, and the most common way to find one is rental yield: the annual rent expressed as a percentage of the property value. Typical gross yields in the UK sit somewhere between 4% and 7%, varying widely by region.
This calculator turns a target yield into a suggested monthly rent. Enter your property value and a target gross yield, and it shows the monthly and annual rent, plus a quick range from 4% to 7% so you can see how the figure changes. Always sense-check the result against what similar local properties actually let for.
Gross yield versus net yield
Gross yield ignores your costs. Net yield is what really matters to your pocket: it takes the rent, subtracts your running costs such as mortgage interest, insurance, maintenance, letting-agent fees and void periods, and expresses the remaining profit as a percentage of the property value.
Enter your estimated monthly costs and the calculator will also show your monthly profit and net yield, giving a more honest picture of whether the rent covers your outgoings with room to spare.
Check the local market too
Yield gives you a target, but tenants pay the going rate, not a formula. Before setting a price, look at comparable properties on the major letting portals, ask local agents, and factor in the property's condition, size and location. Setting rent too high risks long void periods; too low leaves money on the table.
Remember that rental income is taxable. You will pay Income Tax on your rental profit through Self Assessment, and mortgage interest relief is now given as a limited tax credit rather than a full deduction.
Worked example
A property worth £250,000 let at a 5% gross yield would suggest a rent of about £1,042 a month, or £12,500 a year.
If your monthly costs (mortgage, insurance and maintenance) come to £800, your monthly profit would be around £242, a net yield of roughly 1.2%.
Please note: This is a yield-based guide, not a valuation or financial advice. Achievable rent depends on your local market and property.
Frequently asked questions
What is a good rental yield?
It varies by area, but many landlords look for a gross yield of around 5% to 7%. Northern cities often offer higher yields than the South East, where property values are higher relative to rents.
Should I use gross or net yield?
Use gross yield to set an initial rent target, but net yield, which accounts for your costs, is the truer measure of profitability.
Is the calculated rent what I should definitely charge?
No. It is a starting point based on yield. Always compare against similar local properties, because the market ultimately sets the achievable rent.
Do I pay tax on rental income?
Yes. Rental profit is taxable through Self Assessment. Since 2020, mortgage interest is relieved as a 20% tax credit rather than deducted from profit.
What costs should I include?
Mortgage payments, landlord insurance, maintenance and repairs, letting or management fees, safety certificates, and an allowance for void periods when the property is empty.
Figures last reviewed on 14 August 2026.
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