Buy-to-Let Rental Income Calculator

A buy-to-let rent calculator is designed to provide a very quick estimate of how much rental income you’ll likely need to generate each month to qualify for a buy-to-let mortgage. The calculation is normally based on a set of variables, and in our case, these are a 125% income and a stress test rate of 5% or 5.5%.

The actual monthly rental income you’ll need will depend on the particular lender you go with. Each lender will have their own method for calculating monthly rental income based on various factors, such as your age, monthly outgoings, credit history and other loan amounts.

The calculator will often assume a rental income of at least 125% of your mortgage repayments, so as to build in some “buffer”. Some buy-to-let income calculators can assume a rental income as high as 145%.

To get the most accurate information for your circumstances, we advise contacting our experts, who can review your situation in full and provide advice on the most suitable products and next steps.

A buy-to-let mortgage rent calculator usually only needs some fairly minimal information to provide a quick rental income estimate. You’ll need the loan value required and the stress test rate you want to apply, typically 5% or 5.5%.

A buy-to-let income calculator usually only analyses the rental income for one property at a time, but some will take into account how many other buy-to-let mortgages you already have.

Legally, there’s no limit on the number of buy-to-let mortgages you can hold as you can take out as many as you want and can afford. Most lenders will, however, minimise their own risk by limiting the number of buy-to-let mortgages per borrower, or the amount in total that one person can borrow. 

There are options for mortgages across multiple properties, such as those for portfolio landlords. For more information on these types of products, call us on 0808 303 5492as we can arrange a mortgage with a lender that can cater to these circumstances.

A buy-to-let rental income calculator can only provide you with a quick, high level estimate of how much rental income you’ll likely need to generate to qualify for a buy-to-let mortgage. This can be a really useful starting point, but it won’t be a definitive answer as ultimately it depends on the lender.

How much you can borrow, what income you would need to generate, and in turn, the type of property you’ll be able to buy, will depend on many factors. This includes your age, credit history, monthly outgoings, and other loans and mortgages you have.

Speak to an expert who can review your personal circumstances and advise on a suitable course of action, including products that might be a good fit.

Most buy-to-let rental income calculators base monthly rental income estimates on a loan amount, rather than the type of property you’re looking to buy. You’ll usually be able to estimate rental income and the loan amount required by researching what properties of a similar size and specification are in your desired location. You can also use a buy-to-let rental yield calculator to compare the likely rental yield or annual income of different properties.

Typically, buy-to-let rental income calculators won’t factor in specific additional costs and expenses, like Stamp Duty on buy-to-lets. The key measurements normally used are the loan value, the stress test rate, and an assumed rental income of at least 125% of mortgage payments.

The application of the stress test rate and 125% income accounts for some additional costs landlords may face to test affordability. However, a buy-to-let rent calculator won’t usually use specific costs in its calculations as it will vary from lender to lend.er

Any additional costs you must pay, such as Stamp Duty, solicitors or estate agent fees, and property management costs, are in addition to the minimum monthly income calculated.