Renting out a property can be a good investment, but you should be aware that the value of your property could go down as well as up, and there are some initial and ongoing costs to bear. This calculator helps you estimate the annual yield for a buy-to-let investment.
If you need a mortgage on the property you'll also have to cover the monthly payments, including during periods when the property might stand empty. Because of this, mortgage lenders typically require the potential rental income to equal at least 125% of monthly mortgage payments (read our guide to buy-to-let mortgages).
Use this calculator to estimate your yield on a buy-to let investment before management fees and maintenance costs. If you don't need a mortgage, enter the deposit as 100% of the purchase price.
Because most buy-to-let mortgages are interest-only, the estimates are based on an interest-only mortgage.
This calculator is for general illustrative purposes only and results may not be accurate. We recommend you speak to a professional financial adviser for advice tailored to your circumstances.