PROPERTY INVESTMENT CALCULATOR
Use this UK buy-to-let investment calculator to test how purchase price, deposit, mortgage borrowing, rental income and ongoing costs shape gross yield, net yield, pre-tax cash flow and cash-on-cash return.
This buy-to-let calculator brings together the cash you put in, the borrowing you use and the income the property may produce. Test the purchase price, deposit, estimated stamp duty and acquisition costs, mortgage type and rate, rent, management, maintenance and annual operating costs to see how the investment case changes.
Worked buy-to-let investment example
For a £300,000 additional property in England or Northern Ireland, enter £1,750 monthly rent and a 25% deposit. The deposit is £75,000, so the calculator shows a £225,000 mortgage amount. With estimated SDLT of £20,000, £1,500 legal costs, £10,000 refurbishment and £500 other acquisition costs, total cash required is £107,000. Using an interest-only mortgage at 5%, annual mortgage interest is £11,250. Management at 10%, maintenance at 5%, £300 insurance and £250 other operating costs total £3,700 a year. Against £21,000 annual rent, the resulting pre-tax cash flow is £6,050 a year, or about £504 a month.
How the deposit changes the calculation: a larger deposit reduces the mortgage amount because the calculator subtracts the deposit from the purchase price. That can reduce mortgage payments and change cash flow, but it also increases the cash invested. The tool uses the resulting mortgage amount and total cash required when calculating the investment figures and cash-on-cash return. Results are illustrative, pre-tax and depend on the rent, mortgage terms and costs you enter.
Test the purchase price, deposit percentage or cash amount, stamp duty and acquisition costs, rental income, mortgage type and interest rate, management, maintenance and annual operating costs. Review the resulting mortgage amount, cash required, rental yields, monthly and annual cash flow, break-even rent, rent headroom and cash-on-cash return.
A higher or lower deposit changes both the borrowing and the cash committed to the purchase. Small changes in rent, interest rates, mortgage type or ongoing costs can also materially change the pre-tax return shown by the calculator.