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Useful next calculations
Rates & sources
SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.
Source: HMRC / Welsh Revenue / Revenue Scotland — check the linked guidance and any live quote before acting.
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
Example: testing whether a rental still produces profit
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Monthly rent | £1,250 |
| Monthly mortgage | £700 |
| Agent fee | 10% |
| Maintenance reserve | 5% of rent |
If the profit only appears because the property is fully occupied and the mortgage rate stays low, treat the result as fragile rather than comfortable.
How to read your results
Monthly Profit
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Annual Profit
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Profit Margin
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This calculator estimates annual and monthly net profit from a residential buy-to-let property in the UK. It deducts allowable operating expenses including letting agent fees, landlord insurance, maintenance reserves, and void period allowances from gross rental income to arrive at a net operating figure. It then applies the Section 24 mortgage interest restriction to calculate taxable income and estimated tax liability based on your specified income tax rate. The result is an after-tax profit or loss figure. The calculator does not account for capital gains tax on eventual sale, depreciation of fixtures, or complex ownership structures such as limited companies. Figures are estimates only; always seek advice from a qualified accountant familiar with property taxation before making investment decisions.
Common mistakes
- !Comparing rent and ownership costs without including taxes, fees and maintenance.
- !Using purchase price alone without testing financing or vacancy assumptions.
- !Relying on yield or growth in isolation instead of reviewing the full property case.
- !Using the wrong national transaction-tax calculator for the purchase location.
What to do next
- Run a second scenario with a higher rate or lower rental yield.
- Compare the result with a buy-versus-rent or mortgage calculator before making an offer.
- Use the matching national transaction-tax calculator for the purchase location.
- Note the key figures to share with your solicitor or lender.
Go deeper — 1 guide reference this calculator
Frequently asked
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