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Buy-to-Let Calculator
Free UK buy-to-let calculator. Enter property value, monthly rent, mortgage balance, interest rate, annual costs, and tax bracket to calculate net monthly profit, annual return, and the Section 24 (Finance Cost Restriction) tax impact. Includes gross and net yield.
Insurance, agent fees, repairs, etc.
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Frequently Asked Questions
What is Section 24 and how does it affect landlords?
Section 24 of the Finance Act 2015 (fully phased in from April 2020) restricts the deduction of mortgage interest from rental income for individual landlords. Instead of deducting mortgage interest from rental profit, landlords now pay tax on their gross rental income (minus non-finance costs) and receive a 20% tax credit on mortgage interest. Higher and additional rate taxpayers are most affected — many can now make an accounting profit but still pay significant tax, or even show a loss after tax.
Does Section 24 apply to limited companies?
No. Section 24 only applies to individual landlords, partnerships, and LLPs. Buy-to-let properties held through a limited company can still deduct mortgage interest as a business expense. This has led many landlords to consider incorporation, though there are CGT and SDLT costs to transferring existing properties into a company structure.
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