Rental ROI Calculator
Calculate the true return on investment for a rental property, including all purchase costs, refurbishment, and ongoing expenses.
Purchase costs
75% LTV — set equal to purchase price if buying outright
Use our stamp duty calculator to work this out
Any renovation or improvement before letting
Income & ongoing costs
Insurance, maintenance, management fees, voids, etc.
Set to £0 if buying outright
Return on investment
Cash-on-cash return
3.77%
Total ROI (pre-mortgage)
4.49%
Gross yield
5.76%
Net yield
4.80%
Tip: Cash-on-cash return measures your annual profit relative to the cash you actually put in (deposit + fees + refurb). It shows how hard your own money is working — leverage can amplify this. Aim for 5%+ for a solid buy-to-let.
How rental ROI is calculated
Cash invested is the actual cash you put in: deposit + stamp duty + legal fees + survey + refurbishment. This does not include the mortgage loan — only your own money.
Cash-on-cash return divides your annual net profit (after all costs and mortgage payments) by the cash you invested. This is the most important metric for leveraged buy-to-let investors because it shows your actual return on the cash you deployed.
Total ROI (pre-mortgage) divides profit before mortgage payments by the total property cost (purchase + all fees). This ignores financing and is useful for comparing properties on a like-for-like basis.
For more detailed analysis, also use our stamp duty calculator, mortgage calculator, and tax calculator.
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