Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

HMO Profitability Calculator 2026/27

HMO Room-by-Room Profitability Calculator

✓ 2026/27 Deal Analyser

1. Property & Acquisition

Property Purchase Price

Refurbishment & Setup Costs

Stamp Duty, Legal & Survey Fees

Mortgage LTV

Mortgage Interest Rate (Interest-only)

2. Room Rents & Occupancy

Average Occupancy / Void Allowance

92% represents roughly 1 month void per room per year.

Monthly Rent per Room (Set to 0 if unused)

3. Monthly Expenses

Management Fee (% of rent)

HMO Utilities (Elec, Gas, Water, Broadband)

HMO landlords typically pay bills on behalf of tenants.

Council Tax, Insurance & Cleaner

Net Monthly Cashflow

£1,250

after all expenses & mortgage

HMO Net Yield

6.50%

based on purchase price

Cash-on-Cash ROI

12.50%

on total invested capital

Gross Monthly Rent

£3,050

adjusted for occupancy

HMO Monthly Operating Ledger

Gross Adjusted Rental Income £2,806

Mortgage Payment (Interest) -£1,031

Management Commission -£281

Utilities & Council Tax/Bills -£550

Net Monthly Cashflow £944

Equity Capital 40%

Mortgage Debt 60%

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Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.

With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Related Calculators

Houses in Multiple Occupation (HMOs) generally yield higher rental returns because you rent rooms individually. However, they carry higher operational costs, stricter licensing regulations, and increased management needs.