Buy-to-Let Yield Calculator
Calculate gross yield, net yield, return on deposit and monthly cashflow for buy-to-let investments.
Last updated: April 2026 · Source: GOV.UK — Tax relief for residential landlords
Gross Yield
5.28%
Net Yield
-0.16%
Return on Deposit
-0.62%
Monthly Cashflow
-£32.45
| Annual Rent | £12,692.31 |
| Mortgage Interest | -£10,312.50 |
| Management (10%) | -£1,269.23 |
| Insurance + Maintenance | -£1,500.00 |
| Net Annual Profit | -£389.42 |
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Buy-to-let yield measures the return on your property investment. Gross yield is the annual rent divided by the property price. Net yield subtracts all running costs including mortgage interest, agent fees, maintenance, insurance and void periods. Return on Investment (ROI) measures the cash return on the actual capital you have invested (your deposit and purchase costs).
Since April 2020, landlords can no longer deduct mortgage interest from rental income. Instead, a 20% tax credit is given on mortgage interest paid. This means higher and additional-rate taxpayer landlords pay significantly more tax than under the old rules. The calculator applies the correct tax credit method.
This calculator produces gross yield, net yield and cash-on-cash ROI. It also factors in capital appreciation scenarios to show total return including equity growth. Enter the property price, rental income, all costs and your tax band to see the full picture.
Example: £200,000 property, £900/month rent, 40% taxpayer
- Annual rent: £10,800 — Gross yield: 5.4%
- Annual costs (mortgage interest £6,000, agent £1,080, maintenance £1,000, voids £900, insurance £250): £9,230
- Net income before tax: £1,570
- Tax: £10,800 rental income taxed at 40% = £4,320, less 20% mortgage interest credit (£1,200) = £3,120 tax
- Cash ROI on £55,000 invested: (£1,570 − £3,120 + £1,200) ÷ £55,000 = −0.64%
Frequently Asked Questions
- What does the Buy-to-Let Yield Calculator do?
- Calculate gross yield, net yield, return on deposit and monthly cashflow for buy-to-let investments. All calculations are performed in your browser using official UK rates and thresholds.
- Is this based on current interest rates?
- You can enter any interest rate to model different scenarios. Check the Bank of England base rate and current mortgage deals from lenders for the latest rates.
- Should I get professional advice?
- This calculator provides estimates for guidance only. For a formal mortgage offer, speak to a mortgage broker or lender who can assess your full circumstances and provide personalised advice.