Buy-to-Let Calculator
Work out the monthly cashflow, cash-on-cash return and gross yield on any UK buy-to-let. Enter the price, deposit, mortgage rate, rent and running costs to see if the numbers stack up. Free, instant, no signup.
% of price, typically 25% for BTL
Interest-only, annual %
Management, insurance, maintenance, voids
How buy-to-let returns work
A buy-to-let is a leveraged investment: you put in a deposit and borrow the rest. Three numbers tell you whether it works:
- Cashflow: annual rent minus the mortgage and running costs. Positive cashflow means the property pays its own way.
- Cash-on-cash return: cashflow divided by the cash you actually invested (the deposit). This is the truest measure of a leveraged BTL's performance.
- Gross yield: annual rent over purchase price. A quick comparison figure, but it ignores both the mortgage and costs.
Capital growth and tax sit on top of all this, but if the cashflow doesn't work, the deal usually doesn't either.
Buy-to-let FAQs
How do you calculate buy-to-let returns?
Start with annual rent, then subtract the mortgage cost and running costs to get annual cashflow. Divide that cashflow by the cash you put in (the deposit, plus purchase costs) for your cash-on-cash return, the headline measure of a leveraged buy-to-let.
What deposit do you need for a buy-to-let mortgage?
Most BTL lenders require at least a 25% deposit, so a 75% loan-to-value. Some products go to 80% LTV, but the best rates usually sit at 25% deposit or more.
Are buy-to-let mortgages interest-only?
Most are. BTL investors typically take interest-only mortgages to keep monthly payments low and maximise cashflow, repaying or refinancing the capital later. This calculator assumes interest-only.
What is a good cash-on-cash return for a BTL?
It varies by area and strategy, but many UK buy-to-let investors target a cash-on-cash return of 8% or more. Higher-yielding northern cities can exceed that; lower-yield southern markets often rely more on capital growth.
What costs should I include for a buy-to-let?
Beyond the mortgage: letting-agent management fees (often 10% to 12% of rent), landlord insurance, maintenance and repairs, an allowance for void periods, ground rent and service charges on a leasehold flat, and safety certificates. Tax is separate.
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