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
Many buy-to-let lenders use an Interest Cover Ratio (ICR) alongside a stressed interest rate when assessing affordability. The required ICR and stress rate vary by lender, borrower and product. The ICR shown here is based on the interest rate you entered and does not confirm that the property will pass a lender’s rental stress test.
What lenders look for
Many lenders assess buy-to-let affordability using an Interest Cover Ratio (ICR) at a stressed interest rate. The stress rate and required rental cover vary by lender, product, borrower, ownership structure and tax position.
A 125% ICR is a common starting point, but it is not a universal minimum. Higher or additional-rate taxpayers may face a higher requirement. Limited-company applications can also be assessed differently depending on the lender and the structure of the case.
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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