Buy-to-Let Deal Calculator
Analyse rental property investments with cashflow and yield calculations.
5% SDLT surcharge applies
Calculated: £15,000
£87
£1,040/year
5.76%
4.83%
£79,000
Deposit + fees + refurb
| Item | Amount |
|---|---|
| Gross Rent | £1,200 |
| Void Loss | -£60 |
| Effective Rent | £1,140 |
| Operating Costs | -£80 |
| Management Fee | -£114 |
| NOI | £946 |
| Mortgage Payment | -£859 |
| Cashflow | £87 |
| Deposit | £62,500 |
| Stamp Duty | £15,000 |
| Legal Fees | £1,500 |
| Refurb Budget | £0 |
| Total Cash Required | £79,000 |
| Loan Amount | £187,500 |
Buy-to-Let Investment Analysis
Our calculator helps UK property investors analyse potential rental investments. Calculate expected cashflow, rental yields, mortgage payments, and total investment required before making a purchase.
Key Metrics to Evaluate
Annual rent ÷ Purchase price × 100
Target: 5-8%
(Annual rent - Expenses) ÷ Purchase price × 100
Target: 4%+
Rent minus all monthly costs
Target: Positive
Annual profit ÷ Total cash invested × 100
Target: 8%+
Costs to Factor In
Frequently Asked Questions
Is buy-to-let still worth it in 2026?▼
Buy-to-let can still be profitable in 2026, but margins are tighter due to higher mortgage rates, the 5% stamp duty surcharge, and Section 24 tax changes. Focus on properties with strong yields (6%+), factor in all costs, and consider areas with high rental demand. Our calculator helps you analyse whether a specific deal makes financial sense.
What is a good rental yield for buy-to-let UK?▼
A gross rental yield of 5-8% is generally considered good for UK buy-to-let properties. Northern cities like Liverpool, Manchester, and Nottingham often offer 6-8% yields, while London typically delivers 3-5% but with better capital growth potential. Net yield (after expenses) is more important - aim for at least 4% net.
How do I calculate buy-to-let cashflow?▼
Monthly cashflow = Monthly rent - Mortgage payment - Running costs (insurance, maintenance, management fees, void periods). Positive cashflow means the property pays for itself. Our calculator automatically computes this based on your inputs, showing whether you'll make or lose money each month.
How much deposit do I need for a buy-to-let mortgage?▼
Most buy-to-let mortgages require a minimum 25% deposit, though some lenders accept 20%. A larger deposit (30-40%) typically gets you better interest rates and improves your cashflow. You'll also need funds for stamp duty, legal fees, and a refurbishment budget.
What costs should I factor into buy-to-let?▼
Key costs include: mortgage payments, 5% stamp duty surcharge, letting agent fees (8-15%), maintenance (budget 10% of rent), landlord insurance, void periods (allow 1 month per year), gas safety certificates, EPC requirements, and potential Section 24 tax implications if you're a higher-rate taxpayer.
How is buy-to-let rental income taxed?▼
Rental income is added to your other income and taxed at your marginal rate (20%, 40%, or 45%). Since Section 24, mortgage interest is no longer deductible - you get a 20% tax credit instead. This significantly impacts higher-rate taxpayers. Consider using a limited company structure for new purchases.