Landlord

Buy to Let Calculator

Calculate rental yield, monthly cashflow, and ROI for your buy-to-let investment property. Validate your figures with AI-powered market analysis.

AI-Powered
Free to use
Property details
Enter your investment figures

Indicative BTL Rates (Dec 2024)

Your LTV: 75% — Typical rates: 5.09-5.99%

View all rate bands
50% LTV or less4.29-4.99%
51-60% LTV4.49-5.29%
61-65% LTV4.69-5.49%
66-70% LTV4.89-5.69%
71-75% LTV5.09-5.99%
76-80% LTV5.49-6.49%
81-85% LTV5.99-6.99%
85%+ LTV6.49%+ (limited)

Rates vary by lender, credit score, and product. Contact us for personalised quotes.

Cost breakdown
Annual operating costs
Management fees£1,440/yr
Insurance£300/yr
Maintenance allowance£720/yr
Void allowance£576/yr
Total operating costs£3,036/yr
Investment returns
Based on your inputs
Gross Yield

5.76%

Before costs

Net Yield

4.55%

After costs

Monthly Cashflow

£88

Positive

Cash on Cash

1.68%

ROI on deposit

Annual Cashflow

£1,052

DSCR

1.10

May struggle to secure finance

Finance Summary

Deposit required£62,500
Mortgage amount£187,500
Monthly mortgage (interest only)£859
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About the Buy to Let Calculator

What it does and how it helps you

The Buy to Let Calculator helps UK landlords calculate rental yield, monthly cashflow, and return on investment for BTL properties. Input your purchase price, expected rent, mortgage details, and operating costs to see comprehensive investment returns including gross yield, net yield, DSCR, and cash-on-cash return.

Calculate gross and net rental yields
Forecast monthly and annual cashflow
Assess DSCR for lender requirements
Compare returns across different deposit sizes and interest rates

How It Works

Understanding the calculation method

The BTL calculator analyses investment returns across multiple metrics: **Gross Yield**: (Annual Rent ÷ Purchase Price) × 100. This is the headline yield before costs. **Net Yield**: ((Annual Rent - Operating Costs) ÷ Purchase Price) × 100. Shows yield after all costs except mortgage. **Monthly Cashflow**: (Monthly Rent - Mortgage Payment - Operating Costs ÷ 12). This is your actual monthly profit or loss. **Cash on Cash Return**: (Annual Cashflow ÷ Deposit) × 100. Shows ROI on your invested capital. **DSCR**: (Net Operating Income ÷ Annual Debt Service). Lenders require DSCR of 1.25+ for most BTL mortgages. The calculator includes realistic operating costs: management fees (typically 8-12%), insurance, maintenance allowance, void periods, and other expenses to give accurate net returns.

When to use this calculator

Use this calculator when evaluating BTL purchase opportunities, comparing properties, or assessing whether a property meets your investment criteria. It's essential for understanding true profitability after all costs and whether the property meets lender DSCR requirements.

Frequently Asked Questions

Common questions about this calculator

In the UK, gross yields vary by region. London averages 3-5%, while Northern cities like Manchester or Liverpool can achieve 6-8%. A good net yield (after all costs) is 4%+ in London, 5-7% elsewhere. However, yield alone doesn't tell the full story—also consider capital growth potential and cashflow.
Most UK BTL lenders require a minimum 25% deposit (75% LTV). Some specialist lenders offer 80-85% LTV but with higher rates and stricter criteria. Portfolio landlords and first-time BTL investors may face higher deposit requirements of 30-40%. Larger deposits secure better interest rates.
Budget 25-35% of gross rent for operating costs: management fees (8-12%), insurance (£200-500/year), maintenance (5-10% of rent), void periods (4-8% allowance), and other costs. Properties in poorer condition or problematic tenants can push costs higher. Always stress test your numbers.
Most UK lenders require DSCR of 1.25-1.45, meaning your net operating income must be 125-145% of your mortgage payment at the stress test rate (typically 5.5%). Higher rate taxpayers face 1.45 requirements due to Section 24. Below 1.25, you'll struggle to secure finance.
Most BTL investors choose interest-only mortgages to maximize cashflow, planning to repay capital from property sale or refinancing. Interest-only keeps monthly payments low but requires an exit strategy. Repayment mortgages build equity faster but significantly reduce monthly cashflow, often making properties cashflow negative.

Related Property Terms

BTL calculator UKRental yield calculatorBuy-to-let investmentBTL mortgage calculatorRental property ROIGross rental yieldNet rental yieldBTL cashflowLandlord profit calculatorProperty investment returns