Buy-to-let calculator
Work out the rental yield, monthly cashflow and lender rental cover on a potential buy-to-let property before you make an offer.
Letting agent fees, insurance, maintenance, void periods, etc.
Monthly profit
£391
After interest-only mortgage payment and running costs
Gross rental yield
6.72%
Net yield
6.00%
Mortgage (interest-only)
£859
Rental cover (ICR)
163%
Loan amount
£187,500
Most buy-to-let lenders require rental cover (ICR) of at least 125% for basic-rate taxpayers and 145% for higher-rate. Your figures pass the common stress threshold. Figures don't include tax — speak to an accountant for a full picture.
What lenders look for
Buy-to-let lenders typically require a minimum 25% deposit and the rent to cover at least 125% of the mortgage interest for basic-rate taxpayers, or 145% for higher and additional-rate taxpayers. They stress-test affordability at a higher notional rate (often 5.5% or more) to make sure the investment is resilient.
Costs this calculator doesn't include
- Stamp Duty — buy-to-let purchases attract a 5% surcharge on top of standard SDLT rates.
- Income tax on rental profits, plus changes to mortgage interest relief for individual landlords.
- Capital gains tax on disposal, conveyancing fees and any safety certificates (gas, EICR, EPC).
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