Property Investment Calculator: Explore Your Next Investment
Instantly see potential returns and equity from realistic property scenarios
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Average Net Yield 5 to 7%
Based on fully managed London and South East investments
Capital Growth Potential
Invest in regeneration zones primed for capital appreciation
Rental Income from Day One
Investment opportunities with tenants in place, ensuring immediate cash flow
Property Investment Calculator
Quickly explore realistic investment returns. Adjust property price, deposit, rental income, and mortgage terms to see how your equity, yield, and potential growth change, all in real time.
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Monthly Mortgage
£165,000
Amount per month
i
An estimate of your monthly repayment, based on loan amount, interest rate, and term. Actual payments may vary.
Stamp Duty
£12,900
Based on UK rates
i
Estimated using current UK thresholds. Actual liability depends on property price and location, and buyer status.
Other Fees
£4,400
Legal, searches, admin
i
Includes legal costs, searches, and admin. Set at approximately 2% of the purchase price for illustration.
Total cash needed
£76,300
Total investment needed
i
Upfront cash needed including deposit, Stamp Duty, legal fees, and estimated refurb costs (£4,000).
Loan to Value
75%
Mortgage ÷ Property price
i
The mortgage amount ÷ property price × 100. Indicates how leveraged the investment is.
Rental Income
£14,400
Annualised from monthly
i
Annual rental income based on the monthly rent you entered. Assumes full occupancy.
Mgmt/Maintenance
£2304
Calculated at 16% of rent
i
Includes letting agent fees, maintenance, and building insurance. Estimated at 16% of rental income.
Gross Rental Yield
6.55%
Rent ÷ Property price
i
Calculated as annual rent ÷ purchase price × 100. Shows return before costs and taxes.
ROCE %
4.24%
Profit ÷ Investment
i
Return on Capital Employed: annual rental profit ÷ cash invested × 100. Excludes property growth.
Net Cashflow PCM
£278.13
Net monthly cashflow
i
Estimated monthly net cashflow after mortgage, management fees, and maintenance.
Growth Return
11.17%
Based on 4% growth
i
Estimated annual return from property value appreciation (assumes 4% p.a.)
Combined Return
15.4%
Cash yield + growth return
i
Total annualised return including both rental income (ROCE) and property growth.
Illustrative only. Figures are estimates based on user inputs and assumptions. Not intended as financial advice. Investments carry risk and actual returns, fees, and costs may vary.
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Understanding Your Results
Your calculator results are designed to give a clear picture of your investment. Each metric shows a different aspect of performance, from upfront costs to long-term returns. Here’s a quick guide to what they mean.
Property Price - Investment Overview
The agreed purchase price of the property. This figure is the foundation of your investment calculations, as all other metrics are based on it. Compare current Investment Opportunities to see typical property prices.
Stamp Duty - UK Property Tax
Stamp Duty Land Tax (SDLT) is a UK government property tax applied on purchases. Check current rates on the official gov.uk Stamp Duty page. Calculating Stamp Duty helps you understand the total upfront costs when buying a property.
Other Fees - Legal, Searches, Admin
These include legal costs, searches, admin charges and any broker or mortgage arrangement fees. For simplicity, we’ve estimated this at 2% of the purchase price, though in many cases the figure may be lower. This conservative allowance helps you plan with confidence and avoid surprises.
Total Cash Needed
This is the sum of your deposit, mortgage fees, Stamp Duty (if applicable), legal and other fees, plus an assumed refurbishment cost of £4,000. It gives you a snapshot of the total upfront capital required to get the property ready for rental.
Loan to Value (LTV)
The LTV shows the proportion of the property price financed through a mortgage. Calculated as Mortgage ÷ Property Price × 100, it indicates your borrowing level for property investments. Lower LTV often reduces lender risk and can help secure better mortgage rates for investment properties.
Annual Rental Income - Expected Rent from Your Property
This is the total rent you could receive over a year. Use it to calculate gross rental yield, net income, and overall investment performance. Accurate rental estimates are essential for evaluating the profitability of your investment property.
Management and Maintenance - Estimated Running Costs
This includes letting agent fees, property maintenance, and building insurance, calculated at approximately 16% of annual rent. Understanding these costs helps you see the net cashflow and profitability of your investment.
Gross Rental Yield
Gross Rental Yield is calculated by dividing the annual rental income by the property purchase price and expressing it as a percentage. This metric illustrates the potential return from rent alone, before any costs or fees. Learn more about investment properties and rental returns to see how this figure can guide your property investment decisions.
Return on Capital Employed (ROCE)
ROCE measures the efficiency of your invested cash. It’s calculated as annual rental profit ÷ cash invested × 100, excluding property growth. This metric helps you understand how effectively your capital is working to generate rental income.
Net Cashflow PCM (per calendar month)
This shows the estimated monthly income you could receive after deducting mortgage payments, letting agent and management fees, maintenance, and building insurance. It illustrates the net cash you might generate each month from your property investment, helping you assess short-term profitability and plan your finances effectively.
Growth Return
Estimated at 4% per year, based on typical UK property market growth. Shows how much your property could increase in value annually, helping you understand the long-term capital appreciation potential of your investment.
Combined Return
Calculates your total potential return by combining annual rental profit with expected property growth, divided by cash invested × 100. Helps you compare investment opportunities and understand the overall profitability of your property investment.
Why Professional Investors Focus on ROCE, Not Just Yield
The Yield Trap
Many novice investors compare properties solely on rental yield – the annual rent as a percentage of the property price. While a 7% yield sounds attractive, it doesn’t tell the full story. Yield ignores leverage, one of the most powerful tools in property investment.
The ROCE Advantage
Return on Capital Employed (ROCE) measures the return on your actual cash invested, rather than the total property value. This gives a more accurate picture of how effectively your money is working for you. For example, a £250,000 property with a £75,000 investment can deliver 24.7% returns on your cash – even though the rental yield is only 7.2%.
Real World Comparison
Investment
Cash Invested
Annual Return
Savings Account
£75K,000
£3,375 (4.5%)
Stock Market
£75,000K
£6000-£7500 (8-10%)
BTL Property
£75,000K
£13,344 (17.8%) £5,844 rental profit + £7,500 estimated capital growth
This example highlights how property investment can outperform traditional savings or stock market returns when leverage is used effectively. Plus, rental income often increases with inflation, while mortgage payments remain fixed, enhancing your long-term cashflow.
Figures are illustrative and based on example assumptions. Actual returns may vary depending on market conditions, property location, and individual circumstances.
Property Investment Calculator FAQs
Have questions about how property investments work or how to use our calculator? Our frequently asked questions cover everything from calculating rental yield and ROCE to understanding total cash requirements, helping you make smarter investment decisions.
What is a good rental yield for a London property?
In outer London and commuter areas, 5.5-8% gross yields are achievable and considered strong. Central London typically offers 3-4% yields but with historically higher capital growth potential over the long term. Our rental yield calculator London results show the best opportunities are in the commuter corridor.
How accurate is this BTL profit calculator?
Our BTL profit calculator uses current market data and realistic assumptions including:
- Actual mortgage rates from BTL lenders - Conservative 3% annual growth (London 20-year average is 5.2%) - Real management and maintenance costs - Current tax regulations
Should I use a rental property calculator before viewing?
Absolutely. Using a rental property calculatorfirst helps you: - Set realistic budgets - Compare areas objectively - Avoid emotional decisions - Negotiate from a position of knowledge
ROCE = (Annual Income -Annual Expenses) ÷ Cash Invested × 100 - Example: (£18,000 income - £12,156 expenses) ÷ £75,000 invested = 7.8% ROCE
ROCE shows your actual return considering both expenses AND leverage, making it the professional investor's key metric.
Can I trust online investment property calculators?
Our investment property calculator is built using real market data and conservative assumptions. However, always:
- Verify rental estimates with local agents - Get accurate insurance quotes - Factor in void periods (we suggest 1 month annually) - Consult a tax advisor for your specific situation
How do I calculate buy to let profit?
Our buy to let profit calculator automatically factors in: - Gross rental income - Mortgage interest payments - Management fees (typically 8-10%) - Insurance and maintenance - Void periods - Annual expenses
The result shows your true monthly and annual profit after all costs.
What’s a good property investment ROI?
Using our property investment ROI calculator, we typically see:
- Cash returns (ROCE): 15-25% in good areas - Total returns: 20-35% including modest growth - Minimum target: 15% to justify the investment
Remember, ROI should always be calculated on your actual cash invested, not the property value.
Can I use this as a property income calculator?
Yes, our tool functions as a comprehensive property income calculator showing:
- Gross rental income - Net income after expenses - Tax implications (basic rate) - Cash flow projections - Annual income totals
How does the investment property yield calculator work?
Our investment property yield calculatoruses the standard formula:
Understanding exactly how to buy investment property is the first step to building wealth through London property. Our proven process removes complexity while maintaining complete transparency.
Next Step:
Book Your Free Consultation to discuss how our process can work for your specific investment goals.
Schedule your free 15 minute call to explore East London and commuter corridor property investments, and see if they align with your goals. It’s your chance to ask questions, with no pressure and no obligation.
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26 August 2025£220,000£55,0005.50%10 yearsYes£1200£165,000£12,900£4,400£78,75075%£14,400£23046.55%4.24%£278.1311.7%15.4%
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