Work out your real annual profit, post-Section 24 tax, and return on equity for any UK rental property in 2026. The honest "should I sell or hold" calculation in 60 seconds.
All values in £. The calculator handles the Section 24 mortgage interest tax credit automatically.
80 pages, 30 templates. Section 21 reform, Section 24 planning, EPC C upgrade plans, MTD ITSA setup, tenant referencing, and the full 2026 survival kit. From £9.99.
Get the playbookSection 24 is the UK tax change that stopped landlords from deducting mortgage interest from rental income before working out tax. Instead you receive a 20% tax credit on the mortgage interest. For higher rate taxpayers with leveraged portfolios, this can dramatically increase the tax bill.
The calculator works out your taxable rental profit by subtracting only your non-mortgage costs from rent. It then taxes that figure at your marginal rate. Finally, it subtracts a 20% credit on your mortgage interest. The result is your real post-tax annual profit.
Return on equity is your annual post-tax profit divided by the equity tied up in the property. Equity is the property value minus the outstanding mortgage. It is the most honest measure of whether the money is working for you, because it ignores the historic purchase price.
As a rough guide, anything below 4% is questionable in 2026 because you can get close to that on a cash savings account with no risk and no work. Anything in the 6 to 10% range is reasonable for a residential rental. Above 10% is genuinely strong. These are only rules of thumb. Your local capital growth potential matters too.
Not automatically. A property with low current return but strong capital growth potential may still be worth holding. Equally, a property with decent return but high upcoming EPC upgrade costs and leasehold ground rent issues may not be. The calculator gives you the numbers. The decision is yours and ideally taken with an accountant.
This calculator only works out the income return. It does not predict capital growth. For most UK landlords, capital growth has historically been a significant part of total return. If you expect strong growth in your area, that justifies a lower current income return. The calculator gives you the income side honestly, so you can add a realistic growth assumption on top.
No. This is a quick calculator to help you understand the shape of the numbers. Always speak to a qualified UK tax adviser before making a decision to sell, buy, or restructure your portfolio.