Buy To Let Rental Yield Calculator

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.

Related Posts

Loan To Value and Potential Borrowing Calculator

Loan To Value and Potential Borrowing Calculator

Discover how much equity you can unlock from your property with our Loan To Value and Potential Borrowing Calculator. By entering your property’s value and outstanding mortgage balance, you can calculate your current loan-to-value (LTV) ratio and find out how much more you could borrow. Whether you’re planning home improvements,

Stamp Duty Land Tax (SDLT) Calculator

Stamp Duty Calculator

Quickly calculate the Stamp Duty Land Tax (SDLT) you’ll owe when purchasing a residential property in England or Northern Ireland. Our Stamp Duty Calculator provides instant estimates for first-time buyers, those moving home, or buying an additional property. Plan your finances confidently with our easy-to-use tool.

Mortgage Overpayment Calculator

Mortgage Overpayment Calculator

Discover how making overpayments on your mortgage can save you money and reduce your mortgage term. Use our Mortgage Overpayment Calculator to see how extra payments can lower your overall interest costs and help you become mortgage-free faster.

Mortgage Amortization Calculator

Mortgage Amortization Calculator

Use our Mortgage Amortization Calculator to see a detailed breakdown of your mortgage payments over time. Understand how your payments are divided between interest and principal, with more interest paid in the early years and more principal repaid as the loan progresses.

Expert Insights into Elite Real Estate & Finance

I am a seasoned property market expert with over 20 years of experience. Formerly a mortgage broker, estate agent, and property developer, I have a comprehensive understanding of the industry from multiple angles.
My articles aim to demystify the property market, drawing on my extensive experience to guide readers through their real estate journeys.