Rental Property ROI Calculator

Rental Property ROI Calculator - Free Investment Tool for Landlords

Use our free rental property ROI calculator to estimate your potential annual profit, net ROI and payback period for buy-to-let properties in Cambridge, Peterborough and the surrounding villages. This calculator is designed for landlords and investors who want to quickly understand whether a rental property stacks up as a strong investment before committing to buy.

Simply enter the purchase price, deposit, mortgage details, expected rent and running costs, and the calculator will show your gross yield, net ROI, annual profit & loss and initial investment breakdown – including mortgage product fees, stamp duty, legal costs and refurbishment.

If you also need to work out your mortgage repayments or your stamp duty bill, you can use our other free tools: Mortgage Repayment Calculator and Stamp Duty Calculator.

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Try the Rental Property ROI Calculator

Adjust the inputs to match your intended purchase price, deposit, mortgage product and expected rent. The results will update when you click “Calculate ROI”.

Tip: Experiment with different interest rates, mortgage terms and mortgage product fee options to see how they impact your long‑term returns on your rental property investment.

Buy-to-Let ROI Calculator

Purchase Details

Mortgage

Annual interest rate on mortgage balance.
Used to amortise the mortgage product fee when added to the loan.
Enter the lender's product fee as a fixed amount or a percentage of the mortgage.

Rental Income

Letting Agent Fees (% of rent)

Typical 8–12% including rent collection.

Operating Costs (% of rent)

Expected empty periods.
Routine repairs and upkeep.

Fixed Annual Costs

Ground rent, service charges etc.

Annual Profit & Loss

Item Amount
Gross annual income £0
Mortgage interest -£0
Management fees -£0
Maintenance -£0
Voids -£0
Insurance -£0
Other costs -£0
Net annual income £0
Gross Yield 0%
Net ROI 0%
Payback Period Years
Initial Investment Breakdown
Item Amount
Purchase price £0
Deposit £0
Mortgage amount £0
Stamp duty £0
Legal fees
Refurbishment £0
Total initial investment £0
Key Assumptions
  • Deposit: -
  • Interest: -
  • Management: -
  • Maintenance: -
  • Voids: -

How to Use Our Rental Property ROI Calculator

Follow these simple steps to get an accurate view of your potential returns:

  1. Enter the purchase price: Use the agreed or expected purchase price for the property you are analysing.
  2. Set your deposit: Choose either a percentage of the purchase price or a fixed deposit amount. The calculator will automatically work out your mortgage amount.
  3. Add purchase costs: Include estimated legal fees and any refurbishment budget. Stamp duty will be calculated separately by our Stamp Duty Calculator, but you can also enter an allowance here if you already know your figure.
  4. Input mortgage details: Add your interest rate (APR), mortgage term in years, and any mortgage product fee. You can choose whether the product fee is a fixed amount or a percentage of the mortgage, and whether it is paid upfront or added to the mortgage and amortised over the term.
  5. Enter the rental income: Use your expected monthly rent based on comparable properties in the local market.
  6. Set ongoing costs: Add letting agent management fees (% of rent), expected void periods, repairs and maintenance (% of rent), plus fixed annual costs such as insurance and service charges.
  7. Click “Calculate ROI”: Review the annual profit & loss, net ROI %, gross yield %, payback period and the initial investment breakdown chart.

If you are unsure about your mortgage options or affordability, you may also find it helpful to use our Mortgage Calculator alongside this rental property ROI calculator.

Why Use a Rental Property ROI Calculator for Buy-to-Let Investments?

This rental property ROI calculator goes further than a basic yield calculation by incorporating your deposit, mortgage product fee, interest rate, term length, voids, maintenance, management and fixed costs. That means you see a much more realistic picture of your true net return, not just headline rent minus mortgage.

  • Realistic ROI: Includes mortgage product fees, purchase costs and running costs so you can avoid over‑estimating your returns on rental properties.
  • Flexible mortgage options: Model fixed or percentage‑based product fees, paid upfront or added to the loan and spread over the mortgage term.
  • Visual breakdown: See exactly where your money is going with an initial investment chart showing deposit, stamp duty, legal fees, refurbishment and product fees.
  • Scenario testing: Quickly re‑run the numbers with different rents, interest rates, void assumptions and maintenance allowances to stress‑test your rental property investment.
  • Integrated with other tools: Use our Stamp Duty Calculator to estimate SDLT based on current HMRC bands, and our Mortgage Calculator to estimate monthly repayments.

For the latest stamp duty bands and guidance you can also refer directly to GOV.UK – Stamp Duty Land Tax Residential Rates, and for current Bank of England base rate information you can check reputable financial news sources or the Bank of England website.

Buy-to-Let ROI Calculator FAQs

What does this rental property ROI calculator show me?

Our rental property ROI calculator shows your estimated gross yield, net ROI, annual profit or loss, and the payback period based on your inputs for buy-to-let investments. It also breaks down your initial investment into deposit, stamp duty, legal fees, refurbishment and any upfront mortgage product fee. This helps you understand both your ongoing cashflow and how long it could take to recover your original investment in a rental property.

If you need a simple repayment estimate for your mortgage, you can also use our Mortgage Calculator, and if you want to confirm your SDLT liability you can use our Stamp Duty Calculator.

How accurate is the ROI calculation?

The calculator is designed as a guide to help you compare rental property investments and stress‑test different scenarios. The accuracy depends on the quality of the figures you enter for rent, voids, maintenance, insurance, service charges and mortgage details. It assumes a simple interest‑only mortgage structure for ROI purposes and amortises any mortgage product fee added to the loan evenly over the mortgage term.

For tailored mortgage advice and product recommendations for your buy-to-let property, you should always speak to a qualified mortgage adviser. Open House Cambridgeshire works closely with experienced brokers who can help you source suitable mortgage products for your rental property investment strategy.

Where can I check current stamp duty and mortgage rates?

For the latest official stamp duty bands and rules, visit GOV.UK – Stamp Duty Land Tax Residential Rates. This provides up‑to‑date thresholds and examples so you can cross‑check the figures from our Stamp Duty Calculator for your rental property purchase.

For mortgage interest rates and SONIA or base rate information, specialist sources such as major UK lenders, financial news websites and the Bank of England are useful references. However, the most practical way to understand what you personally can borrow and at what rate is to speak with a mortgage adviser, which we can help arrange through our local panel.

Can Open House help with my buy-to-let purchase and management?

Yes. Open House Cambridgeshire can support you through the whole rental property journey – from finding suitable buy‑to‑let properties and negotiating the purchase, through to tenant sourcing and full property management. Once you have used the rental property ROI calculator to identify attractive opportunities, we can help you secure the property and manage your rental portfolio day‑to‑day.

You can learn more about our landlord services here: Property Management & Tenant Find Services for Landlords. We cover Cambridge, Peterborough and the surrounding villages, offering tailored tenant‑find, rent collection and fully managed services for rental properties.

Landlord Services

We provide expert landlord services including tenant-find, rent collection and full property management across Cambridge and Peterborough.

Need Help Managing Your Rental Property Investment?

Running the numbers with our rental property ROI calculator is only the first step. The success of your buy‑to‑let investment also depends on finding the right tenants quickly, minimising void periods and keeping on top of maintenance, compliance and rent collection. That is where Open House Cambridgeshire can add real value to your rental property portfolio.

  • Local expertise: We specialise in Cambridge, Peterborough and the surrounding villages, with deep knowledge of local rental demand and achievable rents for buy-to-let properties.
  • Flexible landlord packages: Choose from tenant‑find only, rent collection or full management – we can tailor our service to your portfolio and level of involvement.
  • Compliance and peace of mind: We stay up to date with the latest lettings legislation and best practice, helping you remain compliant while protecting your rental property investment.

If you have used this rental property ROI calculator and would like to discuss your figures, or if you want help sourcing tenants and managing your rental portfolio, please visit our Property Management & Tenant Find Services for Landlords page or contact our team today to discuss your rental property plans.

You can also explore our other free tools: Mortgage Calculator and Stamp Duty Calculator for a complete view of your buying and investment costs.

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