📈BTL Yield
Buy-to-Let Yield & Cashflow Calculator
Simulate gross and net rental yields, management and maintenance reserves, and monthly investor cashflow across UK rental markets.
📈Buy-to-Let Yield & Net Cashflow Calculator
Calculate gross yield, net operating margin, debt-service coverage, and investor monthly cashflow.
£
£ / mo.
ca. £122,500
%
Effective Annual Rent:£107,523
Price-to-Rent Ratio:22.2x
Net Operating Income:£106,203
Cash-on-Cash Return:-2.98 %
Net Cashflow (Pre-Tax):-£1,522 / Mo.
Gross Yield:
4.5 %
Net Yield:
4.13 %
Cashflow Breakdown
Monthly Cashflow Breakdown
Rental income (blue) minus operating costs and loan payments (grey) = net cashflow (green)
Ø Durchschnitt£2,987
Ø Durchschnitt:
Rent:£2,987
Rent
Yield Curve
Cap Rate & Yield Curve
Sensitivity of gross yield (blue) and net cap rate (green) as property price scales
Ø Durchschnitt5.00 %
Ø Durchschnitt:
Gross Yield (%):5.00 %Net Cap Rate (%):4.00 %
Gross Yield (%)
Net Cap Rate (%)
FAQ & Knowledge
Frequently Asked Questions: BTL Yield
Key mortgage guidelines, statutory fees, and investment benchmarks at a glance:
?How is Buy-to-Let mortgage affordability calculated (ICR test)??
BTL loans are assessed on projected rental income rather than personal salary. Lenders require an Interest Cover Ratio (ICR) of 125% to 145% at a stressed interest rate (often 5.5% to 6.5%).
?How does Section 24 affect mortgage interest tax relief for individual landlords??
Individual landlords can no longer deduct mortgage interest from rental profits before calculating tax. Instead, relief is restricted to a basic-rate 20% tax credit, increasing liabilities for higher-rate taxpayers.
?What minimum deposit is required for a Buy-to-Let mortgage??
Most BTL lenders require a minimum deposit of 25% (75% LTV), though some specialist lenders offer 80% LTV products at higher interest margins.
?What is the difference between Gross and Net Rental Yield??
Gross Yield is
(Annual Rent / Purchase Price) × 100. Net Yield deducts service charges, ground rent, insurance, letting agent fees (10–15%), and maintenance from rental income.?Why do many UK investors purchase property through a Special Purpose Vehicle (SPV)??
Limited company SPVs pay Corporation Tax (19% to 25%) on net profits and can fully deduct 100% of mortgage interest as a business expense, bypassing Section 24 restrictions.
?What is an Energy Performance Certificate (EPC) requirement for landlords??
Rental properties in England and Wales must have a valid EPC rating of at least band E to be legally let to tenants on assured shorthold tenancies.
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