Calculate Buy-to-Let Gross Yield

The most widely quoted measure of profitability is “gross yield”. This is the total rental income achievable, assuming 100 per cent occupancy, relative to the total cost of procurement. So in the example an initial rent of £14,400 pa on an investment of £259,600 would give a gross yield of 5.55%

14,400/259,600 = 0.0555