This is a tool that calculates the total return and internal rate of return on a buy-to-let property. In addition, it displays various intermediate, calculated results.

Note: The tool does not currently allow for any specification of how the buy-to-let investment is funded, e.g. by taking out a mortgage. In addition, it does not consider the tax payable on rental income or any capital gains tax due on the selling of the property.

The information required for the calculation of the returns can be considered in three parts, matching the layout of the tool.

The first part is the information related to the property purchase, which, when supplied, gives the intermediate, calculated total purchase cost. This information is described in the following list:

The second part is the information related to the rental income, which, when supplied, gives the intermediate, calculated monthly net and effective rental income. This information is described in the following list:

The third part is the additional information required for calculating the buy-to-let returns, as well as the intermediate, calculated final property price, net capital return on the property and the total effective net rental income. This information is described in the following list:

Associated tool link: http://www.coggit.com/tools/buy_to_let_calculator.html