Property ROI calculator
See the real return on a UK investment property: cash-on-cash return in year one, then total and annualised ROI across your holding period once rent growth, capital growth and the cash you actually invested are all accounted for.
Your numbers
Holding assumptions
3.69%
Year one profit ÷ cash invested
73.17%
Cash profit plus capital growth
11.61%
Compound return per year
6.60%
Annual rent ÷ price
Breakdown
Run this on a real listing
DealLens pulls the price and details straight from a Rightmove or Zoopla link, then scores the deal out of 100 with sensitivity tables and a PDF report you can send to a broker or partner.
Analyse a deal freeHow to measure return on a UK property
Cash-on-cash return is the honest day-one number: the profit left after running costs and mortgage interest, divided by every pound you had to find — deposit, stamp duty, legal fees and refurbishment. If that figure is negative, the deal is costing you money each month regardless of what the property might be worth later.
Total ROI adds the capital growth you expect over the holding period. Because the growth applies to the whole property value while your cash only covered the deposit and costs, leverage does most of the heavy lifting here — which is also why an optimistic growth assumption can make a weak deal look strong. Try 0% growth and see whether the deal still works.
Annualised return converts the total into a compound yearly figure so you can compare a five-year property hold against other investments on a like-for-like basis.
These figures are before income tax and any capital gains tax on sale, and they exclude selling costs. Treat them as a screening tool for comparing deals, then model the tax position with an accountant on the ones that pass.
Property ROI questions
How do you calculate ROI on a UK property?
Return on investment divides your annual profit by the cash you actually put in. Annual profit is rent minus running costs and mortgage interest; cash invested is deposit plus stamp duty, legal fees and refurbishment. Total ROI also adds capital growth and any mortgage capital repaid over the holding period.
What is a good ROI on a rental property?
UK investors typically target a cash-on-cash return of 8% or more, though 5-8% is common in higher-value areas where growth does more of the work. Once capital growth is included, total annualised returns of 10-15% are a realistic target for a well-bought leveraged deal.
What is the difference between ROI and cash-on-cash return?
Cash-on-cash return only counts the cash profit you receive each year against the cash you invested. Total ROI also credits capital growth and mortgage capital repaid, which are real gains but not money in your pocket until you sell or refinance.
Does ROI include capital growth?
Total ROI does. This calculator shows cash-on-cash separately from total return so you can see how much of the result depends on house prices rising rather than rent covering costs.
How does leverage affect property ROI?
A mortgage reduces the cash you put in, so a given amount of growth or profit is measured against a smaller base and the percentage return rises. Leverage also magnifies losses and adds interest cost, which is why cash flow should still be positive at your actual rate.
Estimates only, based on the figures you enter. Not financial, mortgage or tax advice — see our disclaimer. See also the rental yield calculator and the buy to let calculator.