Property & Landlord2 min check

Buy-to-Let Cost Calculator

Build a realistic running-cost picture for a single BTL — including void provision, repairs and tax.

Short answer

Annual BTL costs typically include mortgage interest (~50–60% of rent), insurance (£200–£400), agent fees (10–15% if managed), maintenance (1–2% of property value), gas safety + EPC + EICR, and ground rent / service charge if leasehold. Allow ~30–40% of rent for non-mortgage costs.

Step 1 of 20%

How it works

We tally every recurring landlord cost into a single annual figure, then express net cashflow against rent. Section 24 means individual landlords get only a 20% tax credit on mortgage interest — not full deduction — so high-rate taxpayers pay tax on revenue, not profit.

Worked example

£200k flat, £950/m rent (£11,400/y), interest-only mortgage at £350/m → £4,200 interest, £350 insurance, £100/m service charge, £1,140 management, £600 maintenance, £100 gas safety. Costs: ~£10,790. Pre-tax cashflow £610. After S24 tax: often loss for HR taxpayer.

Who should use this

•Prospective landlords stress-testing a deal
•Existing landlords reviewing profitability
•People comparing personal vs Ltd Co structures

Common mistakes

×Ignoring Section 24 — pre-2017 spreadsheets dramatically overstate profit
×No void / arrears budget
×Forgetting one-off licensing (HMO, selective)
×Underestimating wear & tear on furnished lets

Frequently asked questions

Are mortgage interest costs deductible?▾

Not for individual landlords — replaced by a 20% tax credit since 2020. Ltd Co landlords still deduct fully.

What insurance do I need?▾

Buildings (mandatory if mortgaged), landlord liability, optional contents and rent guarantee.

Do I need an EICR?▾

Yes — every 5 years in England, and at every change of tenancy if expired.

Related calculators

Rental Yield →BTL Stress Test →Landlord Compliance →EPC Duty →