Real Estate Investment Calculator
Enter a property's price, the monthly loan repayment on it, the monthly rent it brings in, and its other monthly costs — see the estimated annual profit or loss, and the annual yield as a percentage of the price.
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Estimated annual profit or loss
+ £6,000.00
Annual yield: +2.00%
Monthly breakdown
| Item | Amount |
|---|---|
| Rent income | + £2,000.00 |
| Loan repayment | − £1,200.00 |
| Other costs | − £300.00 |
| Net monthly cash flow | + £500.00 |
How it's worked out
This is plain arithmetic, not a growth or compounding projection:
Net monthly cash flow = Rent − Loan repayment − Other costs.
Estimated annual profit or loss = Net monthly cash flow × 12.
Annual yield = Annual profit or loss ÷ Property price × 100.
A negative result is a real, valid outcome here — a property whose rent doesn't cover its loan repayment and costs is genuinely losing money each year, and this tool is built to show that plainly rather than hide it. Nothing here is floored at zero.
Worked example
Suppose a property costs £300,000, the monthly loan repayment is £1,200, it rents for £2,000 a month, and other monthly costs (maintenance, insurance, ground rent/service charge, management fees, etc.) come to £300. Net monthly cash flow is £500, so the estimated annual profit is £6,000 — an annual yield of 2% of the property's price.
If the loan repayment were £2,200 instead, net monthly cash flow would be −£500, for an estimated annual loss of £6,000 (a −2% yield) — the same property, losing money instead of making it, because financing costs more than the rent covers.
Frequently asked questions
What should I include in "other monthly costs"?
Anything recurring that isn't the loan repayment: council tax or property tax, insurance, maintenance and repairs, management fees, service charge or ground rent, and a vacancy allowance if you want to be conservative. Leaving items out will make the property look more profitable than it really is.
Does this account for the property's value going up or down over time, or the loan balance being paid off?
No — this is a single year's cash-flow snapshot at today's numbers (rent, loan repayment, costs). It doesn't project future appreciation, rent increases, or the fact that a portion of a loan repayment usually builds equity rather than being a pure cost; use it as a starting point for evaluating one year at a time, not a full long-term investment model.
What does the annual yield percentage actually tell me?
It expresses the estimated annual profit or loss as a percentage of the property's price, so you can compare properties of very different prices on equal footing — a £6,000 annual profit means very different things for a £100,000 property versus a £1,000,000 one, and the yield percentage makes that comparable.
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For information only. This is not financial or tax advice.