Return on Investment Calculator
You can fill out the ROI calculator below to take a look at your property cost, potential mortgage considerations and predicted yield. The Return on Investment calculator is used in financial planning, to see expected projections.
Fill out our investment return calculator below to see your potential monthly returns.
Your potential returns
*ROI calculations are based on estimated rental yield and assume an average capital appreciation of 5% per year (total 27.63% over 5 years – as reported by Savills). A 25% deposit is often required for Buy-to-Let mortgages.
Figures are for illustration only and do not constitute financial advice. Additional costs such as service charges, management fees, taxes, or maintenance may apply. Investors should seek independent financial and tax advice before making any investment decisions.
What is Return on Investment?
How to Calculate ROI with our Property Investment Return Calculator
Our Property Investment Return Calculator helps you quickly estimate your potential monthly returns by factoring in key inputs such as purchase price, rental yield, mortgage interest rate, and down payment. With just a few simple entries, you can clearly understand your expected ROI, compare scenarios, and make more confident property investment decisions based on real numbers rather than assumptions.
If you would like any help filling out the investment calculator, please contact our team.
Ensure you have the correct figures in GBP currency. If you are an overseas investor, you can easily convert your currency using online tools.
First, input the full purchase price of the property you are interested in buying, in the ‘Purchase Price (£)’ section.
Next, add in the expected property yield. You can find this information on your investment brochure, or on the investment websites, such as on Edition Birmingham and Vita Living Circle Square.
If using a mortgage, enter the interest rate as a number only. Enter 0 for cash purchases.
Finally, enter your down payment percentage. In the UK, deposits can be as low as 10%. For example, enter 25 for a 25% deposit.
Frequently Asked Questions (FAQs)
What is ROI in property investment?
In property investment, the ROI is a financial ratio which demonstrates the profitability of the investment. For example, it will tell you how much money you make, relative to the money you invested.
This return on investment calculator uses a simple ROI calculation formula, estimating annual return from the property’s rental yield. The yield percentage measures the income generated by the property in comparison to its purchase price. Property generates income through renting the property out, a service we can offer through our in-house property management team Select Residential..
What is a good ROI in UK real estate?
A ‘good’ ROI is dependent on several factors, such as your investment strategy and property location. For example, properties in less sought-after areas will generate a ‘lower’ yield than a nationwide average, but the figure could still be deemed positive for the area. In high-demand locations such as city centres, yields are stronger, due to the expanding population and tenant interest. For some top UK cities such as Manchester and Birmingham, rental growth is at an all time high, with rental prices for new build apartments increasing by 50% in the last five years alone. You can find out more about city forecasts and the latest industry insights in our Manchester and Birmingham Investor guides.
Is this ROI calculator suitable for overseas investors?
Yes, this ROI calculator can be used for global investors. If you are an overseas investor, just remember to change your currency into GBP, which is what this investment calculator uses to calculate your ROI results. We’re proud to work with global property investors regularly, as we have international offices based in Manchester, Dubai, Shanghai, Hong Kong and Saudi Arabia, offering face-to-face consultations and bi-lingual support. You can take a look at our UK property investment for overseas investors in our guide here.
Understand the key terms for our Property Investment Return Calculator
Buy-to-let property investment
Buy-to-let property investment involves the strategy of purchasing a residential property, with the intention or renting it out. By letting the property out to tenants, you’ll receive regular monthly income through rental payments. Buy-to-let property is commonly regarded as a business investment, as it is not your primary residence. In addition to receiving regular income, you can also expect to build capital appreciation, as in the UK property prices have a strong history of increasing over time. We currently have several investment buy-to-let opportunities available in the UK’s top cities.
Capital appreciation
Capital appreciation refers to the increase in market value of a property over time. Capital value is driven by many factors such as location, inflation, political outlook, economic growth and demand. For investors seeking a long-term method to build wealth, property investment offers a strong strategy. UK property investment in particular remains popular amongst international investors, as the capital growth potential is greater than in other countries, due to the buyer sentiment and demand to buy property.
Mortgage interest rates
A mortgage is essentially a long term loan that can be used to purchase property. Offered by most banks and lenders, a mortgage makes property ownership more accessible, by off-setting the initial capital with monthly repayments. When securing a mortgage, the amount repayable will be determined by an interest rate, which represents the annual cost charged by the lender for the capital borrowed. Mortgage rates can fluctuate often based on the economic market, and in the UK mortgage rates are often determined by the Bank of England’s base rate.
Three steps to getting a mortgage
Once you have found your ideal investment, secure your property and reserve the unit. If you have bought off-plan, you will often have several months to arrange your assets before needing to apply for a mortgage.
Buyers will be submitted to checks as part of the conveyancing process. To ensure a smooth transaction, ensure your assets are aligned and you have the required documentation ready. Select Property can connect you with a trusted mortgage partner to support you.
Once you have the above ready, simply submit your mortgage application with your chosen lender and you will receive your offer.
Get in touch with our global team
Get in touch with our team of UK property consultants, and we’ll assist you with your investment journey, advising you with any questions you may have.
By submitting your details via this online form you agree to be contacted via email/phone/SMS/WhatsApp by Select Property in relation to its property investment brands. We do not share your personal details with third parties. View our full privacy policy for more information.