Question 1

What is buy-to-let ROI?

Accepted Answer

Buy-to-let ROI (return on investment) measures the annual return generated by a rental property relative to the cash you invested — typically the deposit plus any purchase costs. It can include rental income alone or also reflect property appreciation.

Question 2

How do you calculate ROI on a rental property?

Accepted Answer

Cash-on-cash ROI is annual net cash flow divided by the cash invested (usually your deposit), expressed as a percentage. Total return ROI also adds estimated equity growth from property appreciation.

Question 3

Is rental yield the same as ROI?

Accepted Answer

No. Rental yield measures rent against the property value. ROI measures profit against the cash you actually invested, so leverage from a mortgage typically makes ROI higher than yield.

Question 4

Does property appreciation affect ROI?

Accepted Answer

Yes. Appreciation increases your equity over time and can be a significant portion of total return, especially in growth areas. This calculator includes a 5-year property value and equity projection.

Question 5

What is a good buy-to-let ROI in the UK?

Accepted Answer

There is no fixed benchmark, but many UK investors target a cash-on-cash ROI of 8% or more. Anything above 12% is considered strong, while sub-5% returns are usually viewed as weak for the risk involved.

Buy-to-Let ROI Calculator

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