Buy-to-Let Affordability Calculator
Enter the property price, deposit, rent and mortgage rate.
Interest cover ratio
β
Enter values above
Net monthly income
β
Gross yield
β
Net yield
β
Loan to value
β
Interest-only payment
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Property price ($) | 250000 |
| Deposit ($) | 60000 |
| Monthly rent ($) | 1800 |
| Mortgage rate (%) | 5.5 |
| Monthly other costs ($) | 200 |
| Result | Value |
|---|---|
| Interest cover ratio | 206.70% |
| Net monthly income | $729.17 |
| Gross yield | 8.64% |
| Net yield | 3.50% |
| Loan to value | 76.00% |
| Interest-only payment | $870.83 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Buy-to-Let Affordability Calculator
- Property price ($) β default 250000
- Deposit ($) β default 60000
- Monthly rent ($) β default 1800
- Mortgage rate (%) β default 5.5
- Monthly other costs ($) β default 200
- Press Calculate to update the results instantly.
Frequently asked questions
Most buy-to-let lenders want rental income of at least 125% of the interest payment, and 145% where the property is taxed as a higher-rate taxpayer. Some specialist lenders accept less.
Affordability is assessed on an interest-only basis, which is what this calculator does. A repayment mortgage has a higher monthly cost but builds equity.
Aim for at least 4β5% net in most markets. Gross yields above 6% often come with higher management and maintenance costs that pull the net figure back.