Buy-to-Let Rental Yield & Landlord ICR Stress Test Calculator
Evaluate UK Buy-to-Let property investments with Gross Yield, Net Yield after operating costs, the +5% Additional Property SDLT surcharge, and PRA 125% / 145% Interest Coverage Ratio (ICR) stress testing at a 5.5% nominal rate.
| Landlord Underwriting Metric | Formula / Benchmark | Typical UK Requirement |
|---|---|---|
| Gross Rental Yield | (Annual Rent ÷ Property Price) × 100 | 6.0%+ target in high-yield UK regions |
| Net Rental Yield | ((Annual Rent - Costs) ÷ Property Price) × 100 | 4.5%+ net before mortgage finance |
| 125% ICR Stress Test (Basic Rate / SPV Ltd) | Annual Rent >= 125% of interest at 5.5% | Minimum rental cover for Ltd Companies |
| 145% ICR Stress Test (Higher Rate Personal) | Annual Rent >= 145% of interest at 5.5% | Minimum cover for Section 24 landlords |