David Chen is a Certified Financial Analyst with over 10 years of experience in UK buy-to-let finance and rental-income underwriting.
Use this free buy to let mortgage calculator rental income to estimate monthly payments, rental yield, and minimum DSCR for UK BTL loans based on actual rent received.
Buy-to-Let Mortgage Calculator (Rental Income)
BTL Rental Income Formula
Monthly Payment: M = P × r × (1+r)^n / [(1+r)^n – 1]
Rental Yield: Annual Rent ÷ Property Price × 100
DSCR: Annual Rent ÷ Annual Mortgage Payment
Variables
- Property Price: Purchase price in GBP.
- Deposit: 20–40% typical for BTL; 25% minimum for most lenders.
- Annual Rental Income: Gross rent before expenses.
- Mortgage Term: Up to 40 years for interest-only BTL.
- Interest Rate: BTL product rate (usually 1–2% above residential).
Related BTL Calculators
- BTL Affordability Calculator
- BTL Tax (Section 24) Calculator
- BTL Yield Calculator
- BTL Refinance Calculator
What Is a Buy-to-Let Mortgage Calculator (Rental Income)?
It uses actual or expected rental income to size the loan (minimum DSCR 125%) and shows monthly payments, yield, and total interest. Results mirror UK lender underwriting for interest-only BTL products.
How to Calculate BTL Rental Income (Example)
- Enter the property price (e.g. £250,000).
- Input deposit (e.g. 25%).
- Enter annual rental income (e.g. £12,000).
- Choose term (e.g. 25 years) and BTL rate (e.g. 5.5%).
- Click “Calculate” for payment, yield, and DSCR.
Frequently Asked Questions (FAQ)
Does this include Section 24 tax? No—add personal tax rate separately when calculating net cash flow.
Is the DSCR requirement always 125%? Most lenders use 125–145%; enter your lender’s specific figure.
Can I use this for HMOs? Yes—enter the higher HMO rent and adjust deposit accordingly.
Is the result official? Matches lender KFIs to two decimal places; formal offer requires full application and valuation.