Buy-to-Let Investment Calculator
Enter the purchase price, loan details, rent, and running costs to estimate your cashflow, yields, and total return on a Cyprus buy-to-let property.
Transfer fees calculated on tiered statutory rates (3%/5%/8%) with 50% exemption for resale per current Cyprus legislation. New developments are fully exempt from transfer fees where VAT is paid. Vacancy of 8% ≈ 1 month vacant/year. Appreciation is an assumption, not a guarantee. For indicative purposes only — not financial or investment advice.
How We Calculate the Key Investment Metrics
A plain-English breakdown of every yield, return, and ratio produced by the calculator — so you know exactly what each number means and how it is derived.
| Term | How it is derived |
|---|---|
| Total acquisition cost | Purchase price + VAT (new builds) or transfer fees (resale) + legal / closing costs |
| Cash invested | Total acquisition cost − loan amount. This is the actual cash you bring to completion. |
| Effective rent | Gross monthly rent × (1 − vacancy rate). Accounts for the months the property sits empty. |
| Annual net cashflow | (Effective rent − mortgage − communal expenses − running costs) × 12 |
| Year 1 total return | Annual net cashflow + principal repaid in year 1 + property appreciation estimate |
| Metric | Formula | What it tells you |
|---|---|---|
| Gross yield | (Monthly rent × 12) ÷ Total acquisition cost | A quick benchmark before deducting any costs or vacancy. Useful for comparing properties at a glance. |
| Net yield | Annual net cashflow ÷ Total acquisition cost | The real income return on the full property value after vacancy, mortgage, and all running costs. |
| Cash-on-cash return | Annual net cashflow ÷ Cash invested | Shows how hard your actual cash deposit is working. A positive figure means the rent covers all costs and returns money to you. |
| Leveraged return | Year 1 total return ÷ Cash invested | Combines cashflow, mortgage principal repaid, and appreciation. This is the full picture of what your equity earns in year 1. |
| Rent cover ratio | Effective rent ÷ Total monthly obligations | Banks typically require ≥ 1.25×. Below 1.0× means rent does not cover the mortgage and costs — the property costs you money each month. |
| Break-even rent | Mortgage + communal + running costs | The minimum monthly rent needed to cover all outgoings with zero profit. Anything above this is positive cashflow. |
| Payback period | Cash invested ÷ Year 1 total return | Approximate number of years to recover your initial cash outlay, assuming year 1 performance repeats. Shorter is better. |
All metrics are indicative and based on the inputs you provide. Appreciation is an assumption, not a guarantee. Rental income tax is not included — consult your accountant for your personal tax position. Not financial or investment advice.
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