How this Buy to Let Profit Calculator Works?
This calculator helps you understand the profitability of a buy-to-let property. Simply input the relevant values and calculate your annual net profit and profit percentage.
Steps to use the calculator:
- Enter the Purchase Price: Input the total purchase price of the property.
- Add the Annual Rental Income: Enter the total annual rental income.
- Include Annual Mortgage Costs: Enter the total annual mortgage costs.
- Add Annual Maintenance Costs: Include any annual maintenance costs.
- Include Other Annual Costs: Add any other annual costs such as insurance, property management fees, etc.
- Calculate: Click the "Calculate Profit" button to determine your net profit and profit percentage.
Calculation Formula:
Net Profit = Annual Rental Income - (Annual Mortgage Costs + Annual Maintenance Costs + Other Annual Costs)
Profit Percentage = (Net Profit / Purchase Price) × 100
Once calculated, the net profit and profit percentage will be displayed, providing a clear understanding of your investment's financial performance.