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Should I Buy to Let?UK property investment calculator
Independent estimate · no sign-up

See the property as an investment, not a promise.

Model the cash required, annual income, tax, mortgage and exit — then compare the result with five familiar UK investment choices.

Purchase

Upfront cash
£
££20,000
England additional-property SDLT
£
£
£

Rental income

Annualised
£
%
%
%
%
Typical full management: around 10–15% of rent, often plus VAT.
£
Property-specific: use the amount stated in the lease.
£
Property-specific: use the latest service-charge statement.
%
£
Rough starting reserve: about 10% of annual rent. £6,000 every 5 years averages £1,200 per year.
yrs

Mortgage

Financing
£
££150,000
50.0%
%
yrs

Exit scenario

Optional
£
yrs
%
%
Suggested 24% · editable · assumes one individual.
£
The estimate automatically applies one £3,000 annual CGT exemption.

Tax guidance reflects current published rates. Check the official SDLT, Scottish LBTT or Welsh LTT guidance for special cases. See also 2026/27 income-tax bands, CGT rates, property gain guidance and HMRC landlord guidance. This calculator remains an estimate, not tax advice.

Adjust individual forecast years

The annual growth assumptions are applied automatically. Change only the years that need a different rent, cost, refurbishment plan or mortgage rate; that change will carry forward where appropriate.

YearRent / moOccupancyManagement %Ground rentService chargeRepairsMortgage rate
Amber cells are manual overrides.

Your investment snapshot

Based on £178,500 upfront cash, including £150,000 equity, and a 7-year holding period.

POSITIVE CASH FLOW
Upfront cash£178,500Equity + purchase costs
Gross yield6.6%Headline rent ÷ price
Net monthly cash£256After costs, mortgage & tax
Cash-on-cash1.7%Year 1 rental cash return on your upfront money
Total return3.6%Annual return including estimated CGT at the year 7 sale
What do these figures mean?
Upfront cashYour cash deposit/equity plus purchase tax, legal fees, initial works and other purchase costs.
Gross yieldAnnual rent before vacancy or costs, divided by the purchase price. It does not show what you keep.
Net monthly cashYear 1 rent left after vacancy, running costs, mortgage payments and estimated income tax.
Cash-on-cash returnYear 1 net cash flow divided by your upfront cash. A future sale does not affect this measure.
Total return / IRRThe annualised return on your own cash after rental cash flows, mortgage payments and net sale proceeds. It is a levered equity return when a mortgage is used.
Estimated CGTCapital Gains Tax on the estimated taxable property gain. It reduces sale proceeds but the outstanding mortgage does not reduce the taxable gain.

The forecast stops at the selected exit year. If no sale is included, the property cash flow is modelled for 30 years.

Where the rent goes
Gross scheduled rent£19,800
Vacancy allowance−£990
Management & running costs−£3,681
Net operating income£15,129
Mortgage payments−£7,500
Estimated income tax−£4,552
Capital repaid£0
Annual cash in your pocket£3,077
Property P&L and cash flow

Costs show their share of collected rental revenue. Periodic repairs are charged in the year they fall due.

What else could the same cash have done?

Ten years of actual returns

Growth of £100 using calendar-year total returns from 2016–2025, with income reinvested. Your property line is a separate forecast, shown before personal income tax and CGT to match the benchmark basis more closely.

Past, not predicted

Comparison basis: personal tax is excluded from every line. The property line still includes purchase costs, operating costs, mortgage payments and selling costs, but excludes estimated income tax and CGT. It is a leveraged equity return when a mortgage is used; the benchmark investments are unleveraged. Your main dashboard and P&L continue to include estimated property taxes.

Benchmarks: MSCI World GBP Net; iShares Core FTSE 100; iShares £ Corporate Bond; iShares UK Gilts; and the Bank of England Bank Rate history as a transparent cash proxy. ETF figures are GBP NAV total returns before the investor's personal tax and may differ after platform fees and dealing costs. Bank Rate is not a savings-account return. Tax treatment depends on the investment and account used; for example, qualifying ISA income and gains are tax-free. Past performance is not a reliable indicator of future results.

Your exit assumption

£370,000 sale price implies 3.0% annual growth

Net sale proceeds deduct selling costs, estimated CGT and the remaining mortgage.

Estimated property IRR3.6%
Net sale proceeds£203,696
Estimated CGT£8,904
Mortgage remaining£150,000
Region reference3.5% p.a.
Growth difference−0.5% p.a.
Exit-value sensitivityA 10% lower sale price would reduce the estimated IRR from 3.6% to 1.6%.
Exit price −10%£333,000
Downside IRR1.6%
IRR impact−2.0% pts

This calculator provides an illustrative estimate, not financial or tax advice. The phase-one CGT estimate assumes one individual owner, one £3,000 annual exemption and the editable rate selected above; it does not model joint ownership, capital losses, private residence relief or company taxation. Mortgage fees and tax relief are not modelled in full. Always confirm figures with a qualified adviser before investing.