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ROI and Rental Yield Calculator

Enter your property, mortgage and running cost details to see your estimated rental yield, return on investment and annual cashflow.

Rated 4.97 out of 5 from 2,400+ reviews

Mortgage Repayment Calculator

Property Purchase Details

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Where Is The Property?

Mortgage Details

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years

Calculated automatically from your estimated monthly mortgage payment and annual running costs.

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Annual Running Costs

Enter any annual expenses that apply to your property. Leave any fields blank if they do not apply. Your total annual running costs will be calculated automatically.

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Calculated automatically from the costs above.

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How This Calculator Works

This tool gives you a quick snapshot of a buy-to-let investment’s potential performance. Enter the purchase price, expected monthly rent, and property location, then add your mortgage details (deposit, rate, and term) and any running costs — service charge, insurance, letting fees, maintenance, ground rent, utilities, council tax, vacancy allowance, or anything else that applies.
From there, it calculates:
  • Gross rental yield – your annual rent as a percentage of the purchase price, before any costs are taken into account

 

  • Net rental yield – the same calculation after your annual running costs (excluding the mortgage) are deducted, giving a more realistic picture of return

 

  • Annual cashflow – what’s left over each year once your mortgage payments and running costs are covered

 

  • Cash invested – your deposit plus estimated stamp duty, so you can see the return relative to what you’ve actually put in
Stamp duty is estimated automatically based on second-home/buy-to-let rates for the region you select.

Why Rental Yield Matters

Rental yield is one of the first numbers most landlords look at, and for good reason — it’s a fast way to compare properties that might otherwise look similar on paper. But it’s only ever part of the story.

Gross yield is useful for quick comparisons between properties, but it can flatter a purchase that comes with high service charges, an expensive letting agent, or a property in need of ongoing maintenance. 

Net yield strips that away and gets closer to what you’ll actually keep — though even that doesn’t capture everything, since it typically excludes tax, void periods, and one-off costs like legal or arrangement fees.

Yield also isn’t the only measure of whether a buy-to-let stacks up. Two properties with identical yields can deliver very different outcomes once you factor in capital growth prospects, local demand, mortgage structure, and how the loan is geared. 

A high-yielding property with a poor cashflow position — for example, if rent barely covers the mortgage and costs — can be a much riskier hold than a lower-yielding one with healthy monthly cashflow and room to absorb a rate rise or a void period.
That’s why it’s worth using yield as a starting point for comparison, not the final word. The right structure — interest-only versus repayment, the deposit you put down, and the lender and rate you secure — can materially change both your cashflow and your overall return, which is where speaking to a specialist buy-to-let mortgage adviser tends to add the most value.

Important Information

Please note that The Financial Conduct Authority does not regulate commercial finance, and some forms of buy-to-let mortgages. The information presented in this calculator is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of lenders.

While these calculators can provide insight into what could be achievable, they do not provide the full picture. Make an appointment to receive mortgage advice suitable for your needs and circumstances, as well as learn about other mortgage products you may not have considered yet. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

The information provided by these calculators is for illustrative purposes only and does not constitute a mortgage offer, decision in principle or mortgage advice. This information does not contain all of the details you need to choose a mortgage.

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