Tools / Buy to let calculator
Yield, monthly cashflow and return on the cash you actually put in, with the stamp duty surcharge included, because leaving it out is what makes a bad deal look good.
An additional residential property in England or Northern Ireland pays a 5% surcharge on the whole purchase price, on top of the standard bands, wherever the price is £40,000 or more. The surcharge rose from 3% to 5% on 31 October 2024, so older calculators understate it badly. On a £250,000 buy to let that is £12,500 of surcharge alone. A non-UK-resident buyer pays a further 2% on top.
| Portion of price | Standard | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5m | 10% | 15% |
| Above £1.5m | 12% | 17% |
Gross yield is annual rent divided by purchase price, and it flatters every deal because it ignores every cost. Net yield takes running costs off first. Return on cash invested is the one that tells you whether the money worked: annual cashflow divided by the cash you actually put in, which is the deposit plus the stamp duty, not the deposit alone.
An additional residential property in England or Northern Ireland pays the standard bands plus a 5% surcharge on the entire purchase price, where the price is £40,000 or more. On a £250,000 purchase that is £2,500 of standard duty plus £12,500 of surcharge, so £15,000 in total. Non-UK residents pay a further 2%.
No, and it refuses to give you a figure rather than a wrong one. Scotland charges Land and Buildings Transaction Tax with the Additional Dwelling Supplement, and Wales charges Land Transaction Tax with its own higher rates. Both have different bands from the English system.
Gross yields commonly sit between 4% and 8% depending on region and property type, typically higher in the north of England and lower in London and the south east. Net yield and return on cash invested matter more because they account for costs and for the money actually tied up.
Because of the Section 24 finance cost restriction. Mortgage interest on a residential let is no longer deducted from rental profit. It goes in box 44 of the SA105 and becomes a basic rate 20% tax reducer, so a higher-rate taxpayer is taxed on profit calculated before interest.
Last verified 16 September 2026. This is an estimate from a calculator, not tax advice, and GlideOps is not a firm of accountants. It uses 2026/27 rates for England and Northern Ireland and cannot see your full circumstances. Check anything that matters against HMRC guidance or an accountant before you file or commit money.