Buy-to-Let Calculator UK 2026

Professional-grade buy-to-let ROI analysis. Calculate gross yield, net yield, monthly cash flow, true return on investment and 10-year equity projection. Section 24 tax impact included.

📊 Gross & Net Yield 💷 Section 24 Impact 📈 10-Year Projection 🔒 Free, no sign-up

Purchase Price

Monthly Rent

Deposit (%)

= £55,000

Mortgage Rate (%)

Mortgage Term

Mortgage Type

Letting Agent Fee (%)

Typically 8–15% of rent

Void Period (weeks/yr)

Average 3–4 weeks/year

Maintenance (£/yr)

Insurance (£/yr)

Your Tax Rate

Annual Growth (%)

UK avg ~3.5% long-term

Gross Rental Yield

Net Yield (after costs)

Monthly Cash Flow

£0

Annual Cash Flow

£0

Cash-on-Cash Return

Total Cash Invested

£0

Income vs Costs Breakdown

Section 24 Tax Impact

10-Year Property Value

💰

Get a free buy-to-let mortgage quote from specialist brokers

Whole of market • No upfront fees • Expert landlord advice

Get BTL Quote →

Sponsored • We may earn a referral fee at no cost to you

Buy-to-Let in 2026: What Landlords Need to Know

Buy-to-let property investment remains one of the most popular wealth-building strategies in the UK. However, tax changes since 2017 mean careful financial analysis is essential before any purchase.

⚠️ Section 24: The Hidden Cost for Higher-Rate Taxpayers

From April 2020, individual landlords can no longer deduct mortgage interest as a business expense. Instead, you receive a 20% tax credit. If you're a 40% taxpayer, you effectively pay 20% tax on mortgage interest you never received as income — significantly reducing your net return.

What Is a Good BTL Yield in 2026?

Gross yields across UK regions vary significantly:

City/Region	Avg Gross Yield	Rating
Manchester	6.5–8.5%	⭐⭐⭐⭐⭐
Leeds	6.0–8.0%	⭐⭐⭐⭐⭐
Liverpool	7.0–9.0%	⭐⭐⭐⭐⭐
Birmingham	5.5–7.5%	⭐⭐⭐⭐
Sheffield	5.5–7.0%	⭐⭐⭐⭐
London (outer)	4.5–6.0%	⭐⭐⭐
London (central)	2.5–4.0%	⭐⭐

FAQs

What is a good rental yield in the UK?+

A gross rental yield of 5–8% is generally considered good in the UK. Net yields (after all costs) are typically 2–4% lower. London properties often yield 3–4% gross, while northern cities like Manchester, Leeds and Liverpool can achieve 6–9% gross.

What is Section 24 and how does it affect landlords?+

Section 24, phased in from 2017 and fully implemented from 2020, removed the ability for individual landlords to deduct mortgage interest as a business expense. Instead, landlords receive a 20% tax credit on mortgage interest costs. Higher-rate taxpayers (40%+) are most affected — they effectively pay tax on mortgage interest they never receive as profit.

What stamp duty do buy-to-let landlords pay?+

As of October 2024, buy-to-let and second home buyers pay an additional 5% surcharge on top of standard SDLT rates (raised from 3% in the Autumn Budget). Our calculator applies this automatically. Limited companies also pay the surcharge but may benefit from different tax treatment.

What costs should I include in my buy-to-let calculation?+

Key costs include: mortgage payments, stamp duty, letting agent fees (8–15% of rent), buildings insurance (£200–£500/year), maintenance and repairs (1–2% of property value/year), void periods (typically 3–6 weeks/year), landlord insurance, EPC costs, gas safety certificates, and income tax on profits.

Is it still worth investing in buy-to-let in 2026?+

Buy-to-let remains profitable for many landlords but requires more careful analysis post-Section 24. Properties with high yields, lower leverage, and in strong rental demand areas still generate positive returns. The key is rigorous financial modelling — which this calculator provides.

⚠️ Not financial or tax advice. Consult a qualified financial adviser and accountant before investing in property.