Landlord Profit Calculator
Estimate your monthly and annual net profit from a rental property after all costs. Includes mortgage, letting agent fees, maintenance, insurance, and void periods.
How the Landlord Profit Calculator works
This calculator estimates the net monthly and annual profit from a rental property after deducting all key costs. Enter your monthly rent and any void periods (weeks per year where the property is empty and earning no income). Then input your mortgage payment, letting agent fee as a percentage of rent, monthly maintenance, insurance, and any other recurring costs.
If you enter a property value, the calculator will also show you the gross and net rental yields — useful benchmarks for assessing whether a property is generating an adequate return. Gross yield is annual rent divided by property value; net yield accounts for all costs and is a more accurate reflection of true profitability.
Important: this calculator does not account for income tax on rental profits, capital gains tax on any eventual sale, or the Section 24 restriction on mortgage interest relief. UK landlords should consult a qualified accountant or tax adviser to understand their full tax position.
Frequently asked questions
How do I calculate rental profit?
Rental profit is calculated by subtracting all property-related costs from the net rental income received. Start with annual gross rent, deduct void period losses, then subtract mortgage payments, letting agent fees, maintenance, insurance, and any other costs. The resulting figure is your net profit before income tax.
What expenses can landlords deduct?
UK landlords can deduct allowable expenses from rental income before calculating their tax liability. These include letting agent fees, property maintenance and repairs, landlord insurance, utility bills paid by the landlord, council tax (if paid by the landlord), and accountancy fees. Since April 2020, mortgage interest is no longer directly deductible — instead, landlords receive a 20% tax credit on finance costs under Section 24.
How is rental income taxed in the UK?
Rental income is added to your other income and taxed at your marginal rate — 20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate payers. Since 2020, mortgage interest is not deductible; instead, you receive a tax credit equal to 20% of finance costs. All rental income must be declared on a Self Assessment tax return.
What is a good rental yield?
A gross rental yield of 5–7% is generally considered good in the UK, though yields vary significantly by area. London yields are often lower (3–4%) due to high purchase prices, while northern cities such as Liverpool and Manchester can offer gross yields of 6–9%. Net yield, after deducting all costs, will be lower than the gross figure and is a more accurate measure of return.