Solicitor fees, surveys, etc.
Mortgage, insurance, repairs, management fees, etc.
Total ROI
77.5%
Annualised ROI
5.9%
Total Return
£198,061
Cap Rate
3.1%
Everything you need to know about property investment returns
What is a good ROI in the UK?
A good rental property ROI in the UK is typically between 5% and 10% per year, depending on location and market conditions. London properties often have lower rental yields (3-5%) but higher capital growth, while northern cities tend to offer higher yields (6-10%) with more modest growth.
What is cap rate?
The capitalisation rate (cap rate) is the annual net rental income divided by the purchase price, shown as a percentage. It measures the return from rent alone, ignoring capital growth. A higher cap rate means better rental income relative to the property price.
How does Section 24 affect ROI?
Section 24 restricts mortgage interest tax relief for individual landlords to a 20% basic-rate credit. This does not change your gross ROI, but it can significantly reduce your after-tax returns if you are a higher-rate taxpayer. Use our Landlord Tax Calculator to see the full impact on your rental profit.
Important: This calculator provides pre-tax estimates. Actual returns depend on your tax situation, mortgage terms, void periods, and market conditions. Capital growth is not guaranteed. For investment advice, consult a qualified financial adviser.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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