Buy-to-Let ROI Calculator
Estimate gross yield, net yield, monthly cash flow and return on the cash you've invested, after mortgage interest and running costs.
Cash invested
£62,500
Deposit
Loan
£187,500
Gross yield
6.24%
Net yield
5.52%
Monthly cash flow
£290.63
Annual mortgage interest
£10,312.50
Annual rent
£15,600
ROI on cash
5.6%
Figures are pre-tax cash flow. Section 24 limits mortgage interest relief to a 20% tax credit for individual landlords — higher and additional-rate taxpayers should model the after-tax return separately.
Frequently asked questions
What's the difference between gross yield, net yield and ROI?
Gross yield is annual rent divided by the property price. Net yield is annual rent minus running costs, divided by price. ROI is the annual cash flow (after mortgage interest and costs) divided by the cash you invested (the deposit).
Does this account for Section 24 mortgage interest relief?
No. This calculator shows pre-tax cash flow. Section 24 restricts mortgage interest relief to a 20% tax credit for individual landlords, which can materially reduce after-tax profit for higher-rate taxpayers — model this separately or take advice.
Should I include management and maintenance in costs?
Yes — include letting agent fees, insurance, maintenance, ground rent and service charges as annual costs to get a realistic net yield and cash flow.
This calculator gives general estimates for UK private landlords and letting agents, not legal or tax advice. Figures depend on your circumstances and the rules in your part of the UK — check the detail or take advice before acting.