Buy to Let Calculator UK
Check the numbers before you buy. This tool works out the rental yield on a property and the stamp duty you will pay, including the 5% additional property surcharge that applies to most buy to let purchases.
Management, insurance, repairs, voids. Used for net yield.
The 5% surcharge applies to buy to lets and second homes priced 40,000 or more.
How this works: gross yield is annual rent divided by the purchase price. Net yield is annual rent minus running costs, divided by the price. Stamp Duty Land Tax uses the England and Northern Ireland bands from 1 April 2025 (0% to 125,000, 2% to 250,000, 5% to 925,000, 10% to 1.5 million, 12% above), with a 5% surcharge added to every band for additional properties priced 40,000 or more. Cash needed at purchase shown here is the deposit equivalent of the price plus the SDLT, before mortgage, legal, and survey fees. Scotland uses LBTT and Wales uses LTT, which are not covered. This is a free estimate from Rentalize, not financial or tax advice.
What makes a buy to let stack up
Gross vs net yield
Gross yield is a quick comparison figure: annual rent over price. Net yield takes off running costs and is closer to reality. Neither includes mortgage interest or tax, so a mortgaged landlord nets less again, especially after Section 24.
The 5% SDLT surcharge
Since 31 October 2024 the additional property surcharge is 5%, up from 3%. It applies on top of every standard band, so even the portion under 125,000 is taxed at 5%. On a 250,000 buy to let that is 12,500 before any other fees.
Cash in matters
A strong yield can still be a weak deal once stamp duty, legal fees, and a refurbishment are counted. Always judge the return against the total cash you put in, not just the asking price.
Buy to let FAQ
What is a good rental yield in the UK?
As a rough guide, a gross yield around 5% to 6% is typical, with higher figures in parts of the north of England and lower in London and the south east. Net yield, after running costs, is the more honest measure. Use the calculator above to compare any property, then weigh the result against the stamp duty and other buying costs.
Is buy to let worth it in 2026?
It can be, but the margins are tighter than they were. The 5% stamp duty surcharge, Section 24 mortgage interest rules, and higher mortgage rates have squeezed returns, so a strong gross yield matters more than ever. Buy to let tends to work best with a higher yield, a longer hold, and either cash or a low loan to value. Use the yield figure above, then check the tax with the landlord tax calculator before deciding.
How much stamp duty do I pay on a buy to let?
In England and Northern Ireland you pay the standard SDLT bands plus a 5% surcharge on every band for an additional property priced 40,000 or more. The bands from 1 April 2025 are 0% to 125,000, 2% to 250,000, 5% to 925,000, 10% to 1.5 million, and 12% above, so the buy to let rates become 5%, 7%, 10%, 15%, and 17%.
How is gross rental yield calculated?
Gross yield is the annual rent divided by the property price, shown as a percentage. For example, 12,000 of annual rent on a 200,000 property is a 6% gross yield. It is useful for quick comparisons but ignores costs, voids, mortgage interest, and tax.
Does the 5% surcharge apply if I am replacing my main home?
No. The surcharge is for additional properties. If you are simply replacing your only or main residence it does not apply, and if you pay it because of an overlap you may be able to reclaim it when you sell the old home within the time limit. This tool assumes a buy to let or second home when you select Yes.
Does this cover Scotland and Wales?
No. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), both with their own bands and surcharges. This calculator covers England and Northern Ireland SDLT only.
Is this calculator official?
No. It is a free estimate from Rentalize using published SDLT rates. GOV.UK and the HMRC SDLT calculator are the official sources. Confirm before you commit to a purchase.
Manage the property once you own it
Rentalize handles rent collection, maintenance, compliance, and tax ready records for buy to let landlords and letting agents across the UK and Ireland.
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