Buy-to-Let Calculator 2026/27

Calculate rental yield, monthly cash flow and profit after tax. Includes Section 24 mortgage interest restrictions and stamp duty surcharge for additional properties.

Annual Profit After Tax
£0.00
Monthly: £0.00
Gross Rental Yield
0.00%
Net Rental Yield
0.00%
Monthly Rental Income
£0.00
Monthly Costs
£0.00
Monthly Cash Flow (before tax)
£0.00
Annual Tax Liability
£0.00
Stamp Duty Land Tax (SDLT) · Additional Property
SDLT Payable
£0.00
Effective SDLT Rate
0.00%
Years to Recover SDLT
·

Enter your property details to see your buy-to-let profitability.
Monthly Breakdown
Buy-to-Let Tax Rules 2026/27

Section 24 · Mortgage Interest Restriction

Since April 2020, landlords who own property personally can no longer deduct mortgage interest from rental income. Instead, you receive a 20% tax credit on your mortgage interest payments. This means higher-rate (40%) and additional-rate (45%) taxpayers pay significantly more tax than basic-rate taxpayers, because they pay tax on gross rent but only get a 20% credit back.

Section 24 Example

A higher-rate taxpayer with £10,000 annual rent and £6,000 mortgage interest: taxable income = £10,000 (expenses deducted but not mortgage interest). Tax at 40% = £4,000. Less 20% credit on £6,000 = £1,200. Final tax = £2,800 · leaving only £1,200 profit before paying the £6,000 mortgage.

Stamp Duty Surcharge

Additional residential properties (including buy-to-let) attract a 3% SDLT surcharge on top of the standard rates. Rates for 2026/27: 3% on the first £250,000; 8% on £250,001–£925,000; 13% on £925,001–£1.5m; 17% above £1.5m.

Limited Company Advantage

Purchasing through a limited company means mortgage interest remains fully deductible and corporation tax of 25% applies to profits. This can be advantageous for higher-rate taxpayers, though company formation, accountancy costs and mortgage product differences must be weighed carefully.

Buy-to-Let Rental Yield · Is It Worth It? 2026

Gross yield = annual rent ÷ property value × 100. Net yield deducts expenses (~25% of rent). Typical UK yields: 4–7%.

Property Value Annual Rent Gross Yield Net Yield (after costs) Monthly Cash Flow (at 5% mortgage)
£150,000£7,8005.2%3.9%+£25
£200,000£9,6004.8%3.6%−£64
£200,000£12,0006.0%4.5%+£136
£250,000£13,2005.3%4.0%−£28
£250,000£15,6006.2%4.7%+£136
£300,000£16,8005.6%4.2%−£14
£350,000£21,0006.0%4.5%+£175

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Buy-to-Let Calculator FAQs

What is a good rental yield in the UK in 2026?
A gross rental yield of 5–7% is considered good for buy-to-let in 2026. Above 8% is strong. Below 4% may struggle to cover mortgage costs after Section 24 restrictions. Net yield (after all costs) is typically 1–2% lower than gross yield. High-yielding areas include parts of the North West, Yorkshire and the Midlands.
Is buy-to-let still worth it in 2026?
Buy-to-let can still be worth it in 2026, but tighter margins mean careful analysis is essential. Higher mortgage rates (4–5%+) and Section 24 tax restrictions hit higher-rate taxpayers hardest. Many landlords have moved to limited company ownership to restore mortgage interest deductibility. Strong rental demand in many regions continues to support yields, but capital growth expectations have moderated.
What is Section 24 mortgage interest restriction?
Section 24, fully in force since April 2020, prevents individual landlords from deducting mortgage interest as a business expense. Instead, a flat 20% tax credit on mortgage interest is applied. Higher-rate (40%) and additional-rate (45%) taxpayers pay tax on gross rental income including the mortgage interest portion, then receive only 20% back · significantly increasing their tax bill. Limited company landlords are unaffected.
How much deposit do I need for buy-to-let in the UK?
Most buy-to-let lenders require a minimum 25% deposit. Some accept 20%, but rates are higher. A 30–40% deposit typically unlocks the most competitive mortgage products. Unlike residential mortgages, there are no low-deposit (5–10%) buy-to-let options widely available. Lenders also assess rental income against the mortgage payment · typically requiring rent to cover 125–145% of the monthly interest.

For informational purposes only · Not financial advice · Tax rates shown are for 2026/27 · Stamp duty rates based on current HMRC guidance · Always seek professional tax and financial advice before investing