Gross Yield
Calculate gross yield — annual rent as a percentage of price, before any costs.
Introduction
Who this is for: Anyone screening property investments for a quick first comparison.
Why it matters: Gross yield is the fastest way to compare two properties, but it ignores every cost. It is a screening tool, not a decision tool — always follow it with net yield.
Typical scenario: An investor screening a list of commercial units wants a quick ranking before deeper analysis.
- Treating gross yield as if it were a return — it is not, because costs are excluded.
- Comparing gross yields across sectors with very different cost bases.
- Using asking price rather than the price actually likely to be paid.
Inputs
Inputs
Analysis
£84,000 against a price of £1,200,000 gives a gross yield of 7.00%, or 14.3 years purchase. Remember this is before costs — net yield will be materially lower.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Sensitivity
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Live Results
Gross Yield
7.00%
Years Purchase
14.29x