Work Out Your Rental Yield And Return On Investment
Property Details
Rental Income
Expenses
Results
Investment Metrics
Welcome to our Buy To Let Rental Yield Calculator! This powerful tool is designed to help you evaluate the profitability of potential buy-to-let properties. By entering details such as the property price, deposit amount, mortgage interest rate, expected monthly rental income, and expenses, you can quickly calculate essential investment metrics.
Understanding your rental yield and return on investment (ROI) is crucial for making informed decisions in the property market. Whether you’re a seasoned investor expanding your portfolio or a newcomer exploring the buy-to-let landscape, our calculator provides valuable insights to guide your investment strategy.
Use this calculator to:
Estimate Loan Amounts: Determine how much you’ll need to borrow after your deposit.
Calculate Monthly Cash Flow: Understand the net income you’ll receive each month after expenses.
Assess Rental Yields: Evaluate both gross and net rental yields to gauge the property’s income potential.
Analyze ROI: Calculate your annual return on investment to see how hard your money is working for you.
Get started now to make smarter investment choices and maximize your returns in the buy-to-let market!
How It Works
Our Buy To Let Rental Yield Calculator is designed to help you assess the profitability of potential investment properties by calculating key financial metrics. Understanding these metrics is essential for making informed decisions in the buy-to-let market. Here’s a simple guide on how the calculator works and what each metric means.
1. Loan Amount
Formula:
Loan Amount = Property Price – Deposit Amount
Purpose: Determines how much you need to borrow from the lender.
2. Monthly Mortgage Payment
Formula:
Monthly Mortgage Payment = (Loan Amount × Mortgage Interest Rate) ÷ 12
Purpose: Calculates your monthly cost for the interest-only mortgage.
3. Monthly Cash Flow
Formula:
Monthly Cash Flow = Monthly Rental Income – (Monthly Mortgage Payment + Monthly Expenses)
Purpose: Shows the net income you earn each month after expenses.
4. Gross Rental Yield
Formula:
Gross Rental Yield (%) = (Annual Rental Income ÷ Property Price) × 100
Where Annual Rental Income = Monthly Rental Income × 12
Purpose: Measures the property’s income potential before expenses.
5. Net Rental Yield
Formula:
Net Rental Yield (%) = (Annual Net Income ÷ Property Price) × 100
Where Annual Net Income = (Monthly Rental Income – Monthly Expenses) × 12
Purpose: Provides a more accurate yield by accounting for expenses.
6. Annual Return on Investment (ROI)
Formula:
Annual ROI (%) = (Annual Cash Flow ÷ Total Investment) × 100
Where Annual Cash Flow = Monthly Cash Flow × 12
Total Investment = Deposit Amount + (Monthly Expenses × 12)
Purpose: Indicates how effectively your investment is generating profits.
Important Information...
This information is generated by a computer and is based on certain assumptions, with results rounded for simplicity. This calculator is intended to provide a general estimate.
It’s essential to obtain a specific quote from your lender and verify the figures independently before making any decisions. We cannot be held responsible for any inaccuracies.