Useful next calculations
Rates and 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: screening a rental before deeper analysis
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Annual rent | £16,800 |
| Property value | £260,000 |
| Gross yield | 6.5% |
| Checkpoint | Compare costs and vacancy assumptions |
If the gross yield only works at the optimistic end of the rent range, run the numbers again with a month of vacancy and some management cost built in.
Method & assumptions
This calculator produces two figures: gross rental yield and monthly rent. Gross yield is calculated by dividing annual rent by the property value and multiplying by 100. It is the headline figure used to compare properties quickly, but it does not account for running costs, void periods, or financing. A property with a higher gross yield is not necessarily more profitable once costs are deducted.
To build a complete picture, subtract letting agent fees (8–15%), an allowance for maintenance (often modelled at 1% of property value per year), landlord insurance, and an estimate for void periods (one month per year is a common assumption). The result is your net yield. For mortgaged properties, also model your Interest Coverage Ratio against current stress-test rates to confirm lender affordability. Always consider your personal tax position, particularly the Section 24 restriction on mortgage interest deductibility for individual landlords.
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.