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 New Zealand planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Property Value (NZ$)
NZ$750,000
Weekly Rent (NZ$)
NZ$1,400
Annual Expenses — rates, insurance, mgmt (NZ$)
5%
Mortgage Balance (NZ$)
NZ$600,000
After entering these figures, review annual rental income, gross yield and net yield together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Annual Rental Income
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Gross Yield
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Net Yield
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Net Rental Income
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Tax Benefit (if loss)
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
After-Tax Return
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Method & assumptionsAuthoritative sources
This calculator estimates the gross and net rental yield on a New Zealand investment property, along with a tax benefit estimate if the property is negatively geared. Gross yield is simply annual rent divided by property value, expressed as a percentage. Net yield deducts mortgage interest (calculated from your loan balance and interest rate) and other annual expenses such as council rates, insurance, and property management before dividing by property value. From the 2024/25 tax year, mortgage interest deductibility is being reinstated in stages — 80% deductible in 2024/25 and 100% from 1 April 2025 — following the policy reversal by the current Government. This calculator models full interest as an expense for planning purposes.
If your net rental income is negative (a rental loss), the calculator estimates the tax benefit using New Zealand's progressive income tax rates (10.5% up to NZ$14,000; 17.5% to NZ$48,000; 30% to NZ$70,000; 33% to NZ$180,000; and 39% above NZ$180,000 as set by IRD for 2024/25). The tax saving shown assumes the rental loss is fully offset against other income such as salary or business income, which is permitted under current NZ tax law. The bright-line test, ring-fencing rules for property-owning companies, and GST on commercial elements are not modelled here. Always obtain specific advice from a tax adviser or accountant before making investment decisions based on estimated returns.
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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