Free Tool

Buy-to-Let Calculator UK

Calculate rental yield, monthly cash flow, and ROI for UK buy-to-let investments. Updated for 2025 stamp duty rates and tax rules.

Property Details
£250,000
£50k£1.5m
£1,200
Mortgage Details
25% (£62,500)
5.5%
25 years
Running Costs
10%
10%
£300
4 weeks/year
Poor Investment

Below average returns. Consider renegotiating or looking elsewhere.

Gross Yield

5.8%

Net Yield

4.1%

Monthly Cash Flow

-£296

Cash-on-Cash ROI

-4.8%

Save Your BTL Analysis

Get a detailed PDF report of your buy-to-let calculations, including cash flow projections and ROI analysis.

How to Use the Buy-to-Let Calculator

Understanding Rental Yield

Gross rental yield is calculated by dividing the annual rent by the property price, expressed as a percentage. A good gross yield in the UK is typically 5-8%, though this varies significantly by region.

Net rental yield accounts for expenses like management fees, maintenance, insurance, and void periods. This gives a more accurate picture of your actual returns.

What is Cash-on-Cash Return?

Cash-on-cash return measures the annual pre-tax cash flow relative to your total cash investment (deposit plus purchase costs). This metric helps compare investments with different deposit amounts.

Stamp Duty for Buy-to-Let Properties

Buy-to-let properties attract an additional 3% stamp duty surcharge on top of standard rates. Our calculator includes this in the purchase cost calculations automatically.

Tips for Better Buy-to-Let Returns

  • Focus on areas with high rental demand relative to property prices
  • Consider university towns and commuter belt locations
  • Factor in all costs including void periods and maintenance
  • Compare interest-only vs repayment mortgages for cash flow
  • Consider using a limited company structure for tax efficiency

Frequently Asked Questions

What is a good rental yield for buy-to-let UK?

A good gross rental yield is typically 5-7% in the UK. However, yields vary significantly by region - northern cities often achieve 6-8% while London averages 3-5%. Always calculate net yield after expenses.

How much deposit do I need for buy-to-let?

Most buy-to-let mortgages require a minimum 25% deposit, though some lenders offer 15-20% LTV products at higher interest rates. A larger deposit typically secures better rates and improves cash flow.

Is buy-to-let still profitable in 2025?

Buy-to-let can still be profitable in 2025 with careful analysis. Key factors include purchasing at the right price, securing competitive mortgage rates, and efficient property management. Use this calculator to assess each opportunity.