Buy to Let Yield Calculator

Interested in buying a Buy to Let property but want to see how it compares to other investments? Then use the Buy to Let Yield Calculator below to crunch the numbers on a particular property.

Jump to [Notes] or [Prefill Form with Sample Data]


A Buy to Let property's Yield is the percentage return on the investment on an annual basis.

Yield is simply calculated by taking the annual amount of rent received from a property, dividing this figure by the property's price/value, then multiplying the result by 100.

However, this value is just the Gross Yield, and makes no assumptions about the costs involved with buying, maintaining and renting out a property. Neither does it take taxes into consideration. As a result, it can be highly misleading to use Gross Yields when determining whether a property is worth investing in.

The BTLFinder Yield Calculator helps by taking into account the various expenses involved with BTL property investments. As such it is able to show a more realistic Net Yield.

What Additional Expenses Should I Consider?

  • Most BTL mortgages have application fees and other fees.
  • When purchasing a property, remember to factor in solicitor fees, survey fees and other legal fees.
  • Capital repayments of the mortgage if you have one.
  • Letting agents often have additional fees for landlords, such as those for drawing up an inventory, or for providing a new tenant with a tenancy agreement.
  • Rents are largely set by market forces, and it's not always possible to achieve the rental income that you desire.
  • Buying a property in a different part of the UK to where you live? Then remember to account for travelling costs for making viewings and visiting the property (especially if you don't appoint a managing agent).
  • Buying a property in a different country? Then you need to factor in exchange rate and currency risks.
  • If buying a freehold property then be sure to account for property maintainence. You need to account for every eventuality such as a leaking roof, frozen pipes and just general wear and tear.
  • Leasehold properties normally have service charges to pay for buildings insurance plus the upkeep of the building and its communal areas. There may also be ground rent to pay to the leaseholder.
  • Sometimes it's worthwhile paying to extend the lease of leasehold properties with short leases. This will add to the expenses associated with the property.
  • Sometimes tenants have problems paying their rent, so you need to account for the possibility of going a few months without any rental income. In the worst case scenario, you will have to account for the costs of evicting a tenant.
  • It's rare, but not unknown for problem tenants to cause significant damage to the property they are renting.
  • Void periods when tenants move out and new tenants move in. In general, studio/1 bedroom flats in popular areas will let out much more quickly than 3/4 bedroom houses in less desirable areas.
  • Landlords are normally liable for council tax on empty properties. Empty properties will also still have utility bills due.
  • Income from BTL properties is taxable income.
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