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Buy-to-Let Calculator

Calculate rental yield, ROI, net cash flow, and stamp duty for buy-to-let property investments. Includes 5-year profit projections.

Property Details

Enter the purchase price, deposit and expected rental income

Purchase PriceThe total purchase price of the buy-to-let property. This is the figure on which stamp duty (with 5% surcharge) will be calculated.

Deposit PercentageMost buy-to-let mortgages require at least 25% deposit. A larger deposit means a lower LTV ratio and better interest rates.

Expected Monthly RentThe expected monthly rental income. Research local comparable rents on Rightmove and Zoopla to get an accurate figure.

Annual Rent IncreaseExpected annual increase in rent. Historically UK rents have risen around 2-3% per year. This is used for the 5-year projection.

Mortgage & Costs

Your buy-to-let mortgage terms and ongoing property costs

Mortgage Interest RateBuy-to-let mortgage rates are typically higher than residential rates. Current rates range from around 4% to 7% depending on LTV and lender.

Mortgage TermThe length of the mortgage. Interest-only is common for buy-to-let as it keeps monthly costs down. Most lenders offer up to 25-30 years.

years

Annual MaintenanceAnnual maintenance budget as a percentage of rent. A common rule of thumb is 10% of annual rent to cover repairs, boiler servicing, decorating etc.

% of rent

Annual InsuranceLandlord insurance including buildings cover, contents (if furnished), and rent guarantee insurance. Typically £200–£500/year.

Management FeeLetting agent management fee as a percentage of rent. Enter 0 if you will self-manage. Full management typically costs 10-15% of monthly rent.

% of rent

Estimated Void WeeksExpected weeks per year the property will be empty between tenants. The national average is around 2-4 weeks. Budget for this in your cash flow calculations.

weeks/year

Tax Assumptions

Your income tax band affects how rental profit is taxed

Income Tax RateYour marginal income tax rate. Rental profit is added to your other income to determine your tax band. Higher-rate and additional-rate taxpayers get less benefit from mortgage interest relief.

Mortgage Interest Relief RateUnder current UK rules, landlords can only deduct mortgage interest at the basic rate of 20%, regardless of their actual tax band. This was phased in between 2017-2020.

Fixed at 20% basic rate under current UK tax rules