Buy to Let Stress Test – what is your break even point?

by Mark Alexander

8:03 AM, 8th March 2014
About 5 years ago

Buy to Let Stress Test – what is your break even point?

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Buy to Let Stress Test – what is your break even point?

The Bank of England base rate has been at 0.5% now for five years!

It will not stay there forever and can only go up.

Question is; at what interest rate will your properties break even?

This calculator will help you to “stress test” your rental properties – it is free to use. What is your break even point?

If you complete and download the full report we will also share some ways to help you to improve the results.

Landlords Calculator Input Page v3.2

  • Gross annual rent expressed as a percentage of property value.
  • LTV stands for "Loan to Value". It is your loan expressed as a percentage of the value of your property. This is also known as gearing. It's important to know this when you are looking at which mortgage products are best suited to your requirements.
  • Equity is the money you would get back if you were to sell your property after repaying your mortgage. You would probably have to pay an estate agent or an auctioneer and also a solicitor too so not all of this money would end up in your pocket if you were to sell.
  • (excluding mortgage interest)
  • If you decide to download a summary report of these calculations we will share ideas on reducing your costs.
  • After deducting all mortgage interest payments and costs your current return on equity or averaged monthly cashflow in £ is
  • This is your net annual cashflow expressed as a percentage of the equity you have in your property. This calculation is also referred to as; return on cash, cash on cash return, return on capital employed/invested, ROC and ROCI. NOTE - if you have zero or negative equity the this figure is not relevant.
  • Based on the figures you have entered the break even interest rate is ....
  • Only complete the sections below if you would like to download a full report for your own records which includes suggestions on how to increase your returns and protect your cashflow.
  • For your own reference purposes only
  • For your own reference purposes only
  • For your own reference purposes only
  • For your own reference purposes only
  • E.G. bank base rate plus 1.75% for the remaining term of the mortgage. NOTE - this field is for your own reference purposes only
  • For your own reference purposes only
  • For your own reference purposes only
  • For your own reference purposes only
  • For your own reference purposes only
  • For your own reference purposes only
  • For information regarding capital gains tax payable on sale, how it may be reduced and the importance of reporting the sale to HMRC whether you have made a profit or not please see the Tax section of this website


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