Buy to Let Mortgage Calculator
Use this buy to let mortgage calculator to work out how much you could borrow on a rental property, what the monthly payment would be on a repayment or interest-only basis, and whether the rent covers the mortgage. Enter the property price, your deposit, the interest rate, the term and the expected monthly rent.
Calculator
How to use this calculator
- Enter the property price and the deposit you plan to put down. The loan is the difference between the two.
- Enter the interest rate and the term. The repayment figure assumes a fixed rate for the whole term.
- Enter the expected monthly rent, then click Calculate to see the loan, LTV, both payment figures, the gross yield and the interest cover ratio.
Worked example: a £250,000 property with a £62,500 deposit gives a £187,500 loan at 75% LTV. At 5.5% over 25 years the repayment payment is about £1,151 per month, the interest-only payment is about £859 per month, and £1,250 of rent gives a 6.00% gross yield and an interest cover ratio of about 1.45x.
Frequently Asked Questions
What is a buy to let mortgage calculator?
It estimates the loan, monthly payment and rental return for a property you plan to let out, from the price, deposit, rate, term and expected rent.
How is buy to let affordability worked out?
Many lenders look at the interest cover ratio: the monthly rent divided by the monthly interest payment. They often apply a stress test, using a higher rate than the product rate, and require the ratio to clear a minimum threshold.
What deposit do I need for a buy to let mortgage?
It depends on the lender and the property, but 25% is a common minimum deposit, which means a maximum LTV of 75%. Some lenders accept smaller deposits for lower-risk cases.
Is the rental yield the same as profit?
No. Gross yield is annual rent divided by the property price. It ignores mortgage payments, tax, maintenance, letting fees and empty periods, so your actual return will be lower.