In short: this calculator shows what a buy-to-let in Scotland costs you to buy and what it could leave you each month, on the figures you put in. It adds Land and Buildings Transaction Tax and the 8% Additional Dwelling Supplement for you, then gives the cash you need, gross yield, net yield and monthly cash flow after mortgage interest. The starting figures are an example only, so change them to your own. It is a working tool, not a forecast and not advice.
Your figures
- LBTT
- Additional Dwelling Supplement
- Purchase tax in total
- Deposit
- Mortgage
- Cash you need
- Gross yield
- Net yield, before mortgage
- Rent after voids, a year
- Running costs, a year
- Mortgage interest, a year
- Cash flow, a month
- Return on the cash you put in
Illustrative only, on your own inputs. Before income tax on the rent. Not a forecast, not advice.
How the calculator works it out
Every figure comes from the boxes on the left, so the result is only as good as what goes in. This is the arithmetic, line by line, so you can check it or redo it on paper.
- Purchase tax. For Scotland, Land and Buildings Transaction Tax is charged in slices of the price, and the 8% supplement is charged on the whole price when it applies. You can switch this off and type in your own figure instead.
- Cash you need. The deposit, plus the purchase tax, plus your other buying costs, plus the refurbishment. The mortgage covers the rest of the price only.
- Gross yield. Twelve months of rent divided by the purchase price. It is the number on a listing, and it ignores every cost.
- Net yield. The rent for the weeks the property is let, minus the running costs, divided by the price plus tax, buying costs and works. It leaves the mortgage out, so you can compare a cash buy with a mortgaged one.
- Cash flow. The rent after voids, minus the running costs, minus a year of interest on the loan, divided by twelve.
- Return on the cash you put in. A year of cash flow divided by the cash you need. We explain why it matters in cash-on-cash return.
The example that loads with the page is the same £120,000 flat renting at £825 a month that we use in gross yield vs net yield. It is there to show the method. It is not a property we are offering, and it is not a promise of what any flat will earn.
Where the tax figures come from
Scotland charges Land and Buildings Transaction Tax, or LBTT, where England charges stamp duty. These are the residential bands the calculator uses. The Scottish Government's ready reckoners for the 2026 to 2027 Budget list the same bands, and they have not changed since 1 April 2021.
| Part of the price | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
The Additional Dwelling Supplement has been 8% of the whole price since 5 December 2024, on purchases of £40,000 or more. An individual pays it if they will own two or more homes once the purchase is done, counting homes anywhere in the world. A company pays it on most homes it buys. Sources: Revenue Scotland, residential property, Revenue Scotland, Additional Dwelling Supplement and the Scottish Budget 2026 to 2027 tax ready reckoners. Checked on 20 October 2026.
First-time buyer relief does not apply to a buy-to-let, so the calculator leaves it out. For the rules in more depth, our page on property sourcing in Glasgow works through two examples.
What the calculator leaves out
A short tool cannot hold every cost, so be clear about what is missing before you rely on the result.
- Income tax on the rent. It depends on your own tax position and where you live. If you live outside the UK, the letting agent normally takes basic rate tax off the rent under the Non-Resident Landlord Scheme unless HMRC has agreed otherwise.
- The lender's rent test. Lenders check that the rent covers the interest by a margin at a stressed rate. Our guide to stress-testing a buy-to-let mortgage shows how.
- Changes over time: rent rises, rate changes at the end of a fixed deal, a bigger repair to the roof or the close, or a change in the property's value.
- Currency. If you earn in euro or dollars, the cost to you moves with the exchange rate.
Before you rely on a figure. Ask your solicitor for the purchase tax on the actual purchase, your lender or broker for the actual rate and fees, and a letting agent for the rent that flat in that street will let for. Then run the numbers again.
Common questions
Does this calculator tell me whether to buy a property?
No. It does the arithmetic on figures you enter, so you can compare properties on the same basis. It is not a forecast and it is not investment advice. Rents, costs, rates and tax all change, and a real property will differ from any example.
Which purchase tax does the calculator use?
For Scotland it works out Land and Buildings Transaction Tax on the 2026 to 2027 residential bands, and adds the 8% Additional Dwelling Supplement if you tick that it applies. For a property in England or Wales, choose to enter the tax yourself and type in the figure your solicitor gives you.
What is the difference between gross and net yield here?
Gross yield is the year's rent divided by the purchase price, before any costs. Net yield takes off voids and running costs, and divides what is left by everything you spend to buy: the price, the tax, the buying costs and any works. The net figure is before mortgage interest, so you can compare properties however they are financed.
Why does the cash flow figure assume an interest-only mortgage?
Interest is the cost of borrowing that comes out of the rent each month, so that is what the calculator shows. If your loan is on repayment terms, your monthly payment will be higher than the figure shown, because part of it repays the loan.
Can I use it if I live outside the UK?
Yes. The figures are in pounds because UK property is bought in pounds. Scotland has no extra purchase tax for buyers who live abroad, but the 8% supplement applies if you own a home anywhere in the world. Tax on the rent under the Non-Resident Landlord Scheme is not included.
Want figures like these on real Glasgow or Edinburgh properties? We put forward 3 ready-to-buy properties within 3 months of your deposit, each one appraised, or we refund the deposit.
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