Property Investment Calculator

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Computation

This calculator takes inputs to display mutliple figures including returns and mortgage breakdowns. This is achieved intially by calculating the mortgage that is associated with the investment property, it will breakdown the mortgage repayments into capital and interest components which allows it to accurately deduct any tax paid from the rental income; meaning more accurate return and profit forcasts.

The calculator follows UK tax law and as mentioned above mortgage interest tax reilef is automatically included in all profit and return figues. This is in addition to the inital £1000 tax break that is given to investors by HMRC.

The annual profit table is calculated as follows: Annual Rental Income - Mortgage Payments - Tax Paid + Tax Relief

As mentioned above, Internal Rate of Return (IRR) is calculated. This gives just one figure for the whole investment project, unlike ROI that will change throughout, as rent increases. Using IRR therefore makes it easier to compare different investment projects, by looking at just one figure. You can read more about how IRR and ROI differ here.

Getting an error? / Can't see certain elements?

An error will occur if not all sections are filled out, or if there is no/negative return on the investment. If a capital repayment mortgage is selected then you might find that switching to an interest only mortgage produces positive returns.

Any Feedback

All feedback and improvements are very welcome so please E-mail all suggestions to: jasper@propertyinvestmentcalculator.co.uk

Alternatively, you can connect with us via the calculator's instagram page: @property_investment_calculator