Rent-to-rent calculator
Rent-to-rent calculator for HMOs and serviced accommodation
In rent-to-rent you rent a property from a landlord and let it out by the room or by the night. Enter the rent you pay the landlord, the income from the rooms or the nights, the bills and the set-up costs. The calculator shows the monthly profit, the profit per room or a stress test at 75% occupancy, and the return on the cash you put in.
Work out your own figures
Choose how you will let it, then fill in what you know. A blank box counts as nothing. The answer comes from the same engine as the full calculator.
How rent-to-rent works
You agree a fixed rent with the owner, usually for several years, and take on the running of the property. You make money if the income from the rooms or the nights covers that rent and every other cost. There is no mortgage, no deposit on a purchase and no stamp duty, so the cash you need up front is small. The rent you pay the landlord is your largest cost, and you pay it whether the property is full or not.
Before you sign, make sure the owner agrees in writing and that the lease, the owner's mortgage and the council's rules allow the property to be let this way. Take legal advice on the agreement.
What each box means
- Rent you pay the landlord
- The monthly rent in your agreement with the owner.
- Rooms and rent per room, or nightly rate
- For an HMO, the rooms you let and the average monthly rent of one. For serviced accommodation, the average nightly price and the booking commission.
- Occupancy
- The share of the rooms or nights you expect to fill. Test the deal with a lower figure too.
- Running costs
- The bills you pay, council tax, insurance and cleaning, plus a management fee if someone else runs it.
- Cash up front
- The deposit and rent in advance to the landlord, furnishing, any sourcing fee and, for an HMO, the licence fee.
Why the return looks so high
The cash-on-cash return divides a year's profit by the cash you put in. Because that cash is small, even a modest profit is a large percentage. Judge a rent-to-rent deal on the profit in pounds each month, the profit per room, and what happens at a lower occupancy.
A worked example
A house rented from its owner for £1,400 a month is let as 5 rooms at £560 each, with occupancy of 90%. It is the example from the rent-to-rent guide.
| Rent to the landlord per month | £1,400 |
|---|---|
| Rooms | 5 |
| Rent per room per month | £560 |
| Occupancy | 90% |
| Bills per month | £450 |
| Set-up and furnishing | £6,000 |
| Revenue per month | £2,520 |
|---|---|
| Costs per month | £2,165 |
| Profit per month | £355.00 |
| Profit per room per month | £71.00 |
| Cash needed up front | £9,000 |
| Cash-on-cash return | 47.3% |
For comparison, the serviced accommodation example in the guides, a flat rented for £1,400 a month and let by the night, makes £715.67 a month on £7,800 of cash up front. Choose By the night above to try it.
Questions and answers
How do I work out rent-to-rent profit?
Work out the monthly income from the rooms (rooms x rent per room x occupancy), then take off the rent you pay the landlord and the running costs. In the example that leaves £355.00 a month.
What up-front costs are there in rent-to-rent?
Deal Analyser counts a sourcing fee, the deposit to the landlord, rent in advance, a letting agency fee, the setup and furnishing cost, a referencing fee and any HMO licence fee. In the example, £9,000.
Does rent-to-rent need a mortgage?
No. You rent the property rather than buy it, so there is no mortgage, deposit on a purchase or stamp duty. Your main cost is the rent you pay the landlord.
What is profit per room in rent-to-rent?
It is the monthly profit divided by the number of rooms, £71.00 in the example. It lets you compare properties of different sizes. What counts as enough is up to you.
Why is the return on rent-to-rent often so high?
Because the cash you need up front is small. A modest profit on a small sum is a large percentage, so check the monthly profit in pounds and test the deal with lower occupancy.
What is the difference between HMO and serviced accommodation rent-to-rent?
An HMO is let by the room to tenants who stay for months, so the income is steadier. Serviced accommodation is let by the night, so it earns more per night but pays booking commission, cleaning and all the bills, and its profit moves faster with occupancy.
Read the guides
Other calculators
These figures are estimates from the Deal Analyser calculator, using the UK rules as checked on 10 October 2026. They are not financial, tax or legal advice. Check them for your own deal, and take advice from a regulated adviser, accountant or solicitor before you commit.
Try your first rent-to-rent deal
You need the rent you pay the landlord and the income from the rooms or nights. It is free to use, and your results show straight away without an account. Sign in when you want to save them.
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