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Buy-to-let Investment Calculator

Estimate the economics of a Buy-to-Let property investment.

Enter the purchase price, expected monthly rental income, loan to value (mortgage divided by property value), and your income tax band.


LTV: 50% (£100,000 deposit)
0%
55
100%
LTV: 50% (£100,000 deposit)
0%
55
100%
Annual Summary
NET Profit / Loss
Return On Equity
Gross Yield
Interest Coverage Ratio
Cash Outlay
£8,920
8%
6%
218%
£ 106,500
NET Profit / Loss
Return On Equity
£8,920
8%
Gross Yield
Interest Coverage Ratio
6%
218%

Cash Outlay

Stamp Duty
£ 6,000
Deposit
£ 100,000
Other Costs
£  
Create
Upfront Cash
£ 106,500

Monthly P&L

+ Revenue
£ 1,000
Mortgage Rate (%)
£  
Create
- Interest
£ 133
- Expenses
£  
Create
- Income Tax
£ 0
+ Interest Relief
£ 27
NET Profit
£ 743

Note

These numbers are indicative and do not cover all scenarios.

Figures in Green denote either a positive P&L, passed ICR (> 145%), Gross Yield > 5%, or a positive return on equity. Otherwise they are coloured Red

Currently lenders require an Interest Coverage Ratio (ICR) of at least 145% at a mortgage interest rate of 5.5% (used in this calculator).

Mortgage interest rate is based on Loan To Value (LTV) and is updated quarterly based on averages rates from major UK lenders.