Investment ROI calculator
Model the return on a property across every strategy — Buy-to-Let, HMO, Serviced Accommodation, Flip and BRRRR — with cash flow, yields, and the personal-vs-SPV tax picture.
Drives the auto-filled stamp duty: SDLT bands + 5% additional-property surcharge.
Deal Details
Stamp Duty: £11,500
Equity Created: £40,000
Operating Costs
Market defaults — adjust to match your deal
£50,271 – £125,140
Enter your salary/pension for an exact Section 24 figure and a precise personal-vs-SPV saving. Leave blank to use the band above.
Hold it personally, or in an SPV
SPV (Special Purpose Vehicle)A limited company set up purely to hold buy-to-let property. Rental profit is taxed at corporation tax rather than income tax, and mortgage interest is fully deductible (Section 24 does not apply) — but there are running costs and tighter mortgage options.?
SPV
Section 24
What this means for you
- TIPAs a higher-rate landlord, Section 24 taxes you on rent before mortgage interest with only a 20% credit — net of that, this deal runs at about +£106/mo personally. Held in an SPV it's about +£169/mo (corporation tax, full interest relief).
- WINAs an SPV you'd pay the same stamp duty here, but save about £3,126/yr in income tax. After the higher Ltd-company mortgage rate and ~£1,250/yr accountancy, the SPV is still about £751/yr better off than holding it personally.
- TIPThe SPV is ahead from year one — its yearly cashflow advantage more than covers the extra running cost straight away.
Section 24
SPV
net yield
ICR
LTV
Monthly Cash Flow
£173
After all expenses
Cash-on-Cash
2.49%
Return on cash invested
Net Yield
2.49%
Below Average
Investment Summary
Analysis Tips
Frequently asked
What's the difference between Gross and Net Yield?
Gross yield is your annual rent divided by property price - a simple headline figure. Net yield accounts for all expenses (mortgage, maintenance, insurance, voids, management) to show your actual return. Net yield is what really matters for investment decisions.
What is Cash-on-Cash Return?
Cash-on-cash return measures the annual return on the actual cash you invested (deposit + costs), rather than the property value. This is crucial for leveraged investments where you're using a mortgage. A 20% cash-on-cash return means you get back 20% of your invested cash each year.
What is the BRRRR strategy?
BRRRR stands for Buy, Refurbish, Rent, Refinance, Repeat. You buy below market value, renovate to add value, rent it out, then refinance to pull out your initial investment (or most of it). If done correctly, you can have 'infinite returns' with little or no money left in the deal.
Is HMO more profitable than standard BTL?
HMOs (House in Multiple Occupation) typically generate higher yields because you rent by the room. However, they come with higher management costs, more regulations (licensing, fire safety), and higher tenant turnover. The extra hassle may or may not be worth it depending on your situation.
How do I calculate flip profit?
Flip profit = Sale Price - Purchase Price - Refurb Costs - Stamp Duty - Legal Fees - Selling Costs - Holding Costs (mortgage, insurance while refurbing). Don't forget Capital Gains Tax on the profit if it's not your main residence!
What yield should I aim for?
This depends on your strategy and location. In London, 4-5% gross is considered good. In northern cities, 7-10%+ is achievable. For BTL, aim for positive cash flow after all expenses. For capital growth, you might accept lower yields in appreciating areas.