Buy To Let Mortgage Calculator For Investment Properties

Estimate the total equity required to invest in real estate using IP Global’s buy to let mortgage calculator.

A property investment calculator, also known as a buy-to-let mortgage or BTL mortgage calculator, helps investors assess investment feasibility and potential returns. By inputting details such as property price, acquisition costs, deposit, mortgage terms, rental income, and expenses, it provides insights into cash flow, ROI, and affordability. This tool enables informed decision-making, optimizing financing and portfolio management for investors. Acquisition costs are costs related to a real estate property that are incurred for the express purpose of obtaining that property. These expenses may include professional fees, surveys, and inspection costs, which are essential considerations for investors evaluating their investment opportunities.

Disclaimer: This information is for reference only. Our property investment calculator has been designed to give a general indication of the total equity you would need to make an overseas real estate investment. Calculation results are approximations and for information purposes only and rates quoted are not considered as rate guarantees.

(See table below for an estimate of how much you may need to budget towards acquisition costs)

(See table below for estimated mortgage rates across different markets)

Equity required
Region Mortgage Rates (Up to) Acquision Costs (Estimated)
London 75% 5.0%
Manchester 75% 5.0%
Berlin 60% 7.5%
Melbourne 80% 4.0%
Brisbane 80% 4.0%
New York 55% 6.0%
Chicago 55% 6.0%
Miami 55% 6.0%
Tokyo 70% 5.0%


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A buy-to-let calculator (AKA BTL mortgage calculator or mortgage for investment property calculator) helps you estimate costs and potential profits of buying a property to rent out. It can calculate monthly payments, rental yield and ROI, giving you a clearer picture of the investment's potential.
To effectively utilize a buy-to-let mortgage calculator or BTL mortgage calculator, gather essential details including the property's purchase price, acquisition costs, LTV rate and applicable interest rate. Additional information optional information can include expenses like maintenance and insurance, estimated rental income, and ongoing operating costs such as property management fees. By inputting this information accurately, you can gain valuable insights into the financial feasibility of your investment property, helping you make informed decisions about your property investment strategy.
Compared to traditional mortgages, securing a buy-to-let mortgage requires a larger down payment, typically ranging from 20% to 40% of the property value. This minimum threshold can vary based on several factors including loan-to-value, your financial profile and the property’s characteristics.
Buy-to-let mortgages typically entail higher costs compared to residential mortgages in several key aspects:

Down Payment: Expect a 25-40% down payment, significantly higher than the usual 10-20% for residential mortgages.

Interest Rates: Buy-to-let interest rates are generally 0.5%-1% higher than residential rates due to perceived higher risk.

Additional Fees: Product fees for buy-to-let mortgages can be substantially higher, ranging from 2-4% of the property value.

Taxes: You'll likely pay a higher stamp duty rate on buy-to-let properties.
Calculating your property investment return requires considering different metrics and methods. Gross rental yield offers a basic overview, while net rental yield factors in expenses for a more realistic picture. For buy-to-let mortgages, return focuses on actual cash flow. Return on investment (ROI) incorporates potential property value appreciation. Manual calculations exist, but property investment return calculators (including mortgage calculators) simplify the process. Remember, these are estimates, so consider vacancy rates, maintenance, and market fluctuations. Consult a financial advisor for personalized insights before diving in.
Unlike residential mortgages with standard 25-30 year terms, buy-to-let mortgages offer more flexibility in repayment periods. The average length typically falls between 15-25 years, though some lenders may go up to 30 years depending on specific circumstances.

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