Foundation Studio ยท Buy-to-let ROI
Buy-to-let return on investment
Cash-on-cash return, net yield after mortgage, monthly profit and five-year outlook. Perfect for investor clients deciding whether a purchase makes financial sense.
What you enter
- Property price
- Deposit
- Mortgage rate (% APR)
- Monthly rent
- Monthly costs (excl. mgmt)
- Letting agent fee (% of rent)
What it works out
- Cash-on-cash return
- Gross yield
- Net yield (before mortgage)
- Loan amount
- Purchase fees (est. ~3%)
- Annual rent (gross)
- Annual running costs
- Annual mortgage interest
- Monthly mortgage payment
- Break-even monthly rent
- Net annual profit
- 5-year projected profit
Assumes interest-only mortgage (standard for BTL), flat rent and costs over 5 years, no capital appreciation. Doesn't include SDLT surcharge (3%) for second properties. Add that to the deposit figure if applicable.