Return on Investment
10.00%
Rates & sources
SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.
Source: HMRC / Welsh Revenue / Revenue Scotland — figures refreshed at the start of each tax year.
When to use this calculator
- Before buying, renting, refinancing, or reviewing a property investment.
- When you want to compare cash flow, yield, growth, and ownership costs side by side.
- When you need a fast estimate before speaking to an agent, lender, or adviser.
- When you are assessing whether a rental property still makes financial sense after a mortgage rate change.
- When you want to compare the total cost of renting against owning over a five- or ten-year horizon.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Profit (A$)
20000
Total Investment (A$)
A$15,000
After entering these figures, focus on return on investment first and then rerun the tool with a more cautious assumption to understand the realistic range of outcomes rather than relying on a single estimate.
How to read your results
Return on Investment
Use this to compare scenarios over different time horizons and judge whether the projected outcome clears your minimum required target. Remember that real-world returns fluctuate, so also check the result under a more conservative growth assumption.
Method & assumptionsAuthoritative sources
This calculator divides net profit by total investment and expresses the result as a percentage. It is a simple, universal performance measure that works across all property strategies: buy-to-let, flipping, development, and commercial property. The key to an accurate result is using comprehensive figures for both inputs.
For profit, start with sale proceeds or current market value, then deduct purchase price, all transaction costs (Stamp Duty Land Tax, legal fees, surveys), any renovation or improvement spend, ongoing costs during the holding period, and selling costs including estate agent fees. For investment, use the total cash outlay — deposit, fees, and capital improvements — rather than the gross property price if you used mortgage finance. Note that this calculator does not model Capital Gains Tax, which is chargeable on disposal of investment property at 18% (basic rate) or 24% (higher rate) after your annual CGT allowance. Always seek professional tax advice before completing a property transaction.
Common mistakes
- !Comparing rent and ownership costs without including taxes, fees, and maintenance.
- !Using purchase price alone without testing the impact of financing or vacancy assumptions.
- !Relying on yield or growth in isolation instead of reviewing the full property case.
- !Forgetting Stamp Duty Land Tax (or its Scottish and Welsh equivalents), which can add thousands to the true cost of purchase.
- !Using optimistic rental growth figures without also testing a flat or declining rent scenario to check downside resilience.
What to do next
- Run a second scenario with a higher rate or lower rental yield to check downside resilience.
- Compare the result with a buy-versus-rent or stamp duty calculator before making an offer.
- Use the related guides below to understand agent fees, legal costs, and ongoing maintenance budgets.
- If you are assessing a buy-to-let, check the gross yield against the net yield after mortgage interest, voids, and management fees.
- Note down the key figures from this scenario to share with your solicitor or mortgage broker so they are working from the same assumptions.
Frequently asked
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End-of-article next steps
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