Methodology
How it works

Every calculator uses actual legislation, not approximations. This page documents the sources, formulas, assumptions and update triggers behind all 24 calculators across 8 markets.

Legislative sources Exact formulas Known limitations Update policy Last reviewed May 2026
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Source-first
Every rate, threshold and formula traces back to a specific law, statutory instrument or official guidance document.
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Estimates, not advice
Results are indicative. Individual circumstances vary — always consult a qualified professional before acting.
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Updated on change
Calculators are updated when underlying legislation changes — not on a fixed schedule. Each page shows its last review date.
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Transparent by default
Every calculator includes an inline methodology accordion showing the exact formulas and assumptions used.

How calculations are built

Each calculator is built from the primary legislative source for that market — not from third-party aggregators or approximations. Rates, thresholds, bands and formulas are coded directly from the authoritative text, then cross-checked against official guidance and worked examples.

Where a calculation involves a professional judgment call (e.g. what portion of a property is land vs building for AfA purposes, or what constitutes "principal private residence") the calculator shows a reasonable default with a clear note that the user should verify for their situation.

All calculations are estimates. They do not constitute financial, tax or legal advice. Real-world outcomes depend on individual circumstances, local variations and professional judgment.

Key calculations used across markets

These are the fundamental formulas used across multiple calculators. Each market then applies local tax rates, thresholds and legislative nuances on top.

Rental Yield
Gross Yield = (Annual Rent ÷ Purchase Price) × 100
Net Yield = ((Annual Rent − Annual Costs) ÷ Total Investment) × 100
Cash-on-Cash ROI = (Annual Net Cashflow ÷ Cash Invested) × 100
// Total Investment includes purchase price + all acquisition costs
Mortgage / Annuity Payment
Monthly Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
// P = principal · r = monthly rate · n = term in months
// Used in: UK RvB, DE GrESt, ES ITP, IT Cedolare, CH Amortisation
UK SDLT — Banded Calculation
SDLT = Σ (Band Rate × Amount in Band)
e.g. £500k property (BTL, post Oct 2024):
£0–125k @ 5% = £6,250
£125–250k @ 7% = £8,750
£250–500k @ 10% = £25,000
Total SDLT = £40,000
// Standard rates +2% surcharge for BTL. Source: HMRC SDLT guidance
UK Section 24 — Personal vs Ltd Co Tax
Personal: Tax = (Rent − Allowable Costs) × Income Tax Rate − (Mortgage Interest × 20%)
Ltd Co: Tax = (Rent − All Costs incl. Interest) × Corporation Tax Rate
Annual Saving = Personal Tax − (Ltd Co Tax + Dividend Tax on Extraction)
// Source: Finance Act 2015 s.24 · Corporation Tax Act 2010 · HMRC
DE AfA (Depreciation)
Linear AfA = Building Value × Annual Rate
Pre-1925: 2.5%/yr · 1925+: 2.0%/yr · New build 2023+: 3.0%/yr
Declining Balance (§7 Abs.5a): 5%/yr on remaining book value
Special §7b: +5%/yr years 1–4 (EH40 standard only)
// Source: §7 Abs.4 EStG · §7 Abs.5a EStG · §7b EStG
FR Plus-Value — Holding Period Allowances
IR allowance: 6%/yr years 6–21, 4% year 22 → 100% (exempt after yr 22)
PS allowance: 1.65%/yr years 6–21, 1.60% yr 22, 9%/yr years 23–30 → 100%
Tax = PV Nette IR × 19% + PV Nette PS × 17.2%
// Source: CGI art.150 U–150 VH · LF 2025 art.24 (LMNP reintegration)
US MACRS Depreciation (Schedule E)
Annual Depreciation = Building Value ÷ 27.5 years
Year 1: partial year based on mid-month convention
Tax Saving = Depreciation × Marginal Tax Rate
// Source: IRS Publication 946 · IRC §168 · 27.5-year residential MACRS

Primary sources by market

These are the authoritative documents each market's calculators are built from. Each inline methodology accordion within the calculator cites the specific article or section relevant to that calculation.

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United Kingdom
  • HMRC SDLT guidance (post Oct 2024)
  • Finance Act 2015 — Section 24
  • PRA Supervisory Statement SS13/16 (ICR)
  • Corporation Tax Act 2010
  • HMRC Capital Gains Tax guidance
  • Housing Act 2004 (HMO licensing)
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United States
  • IRS Publication 946 (MACRS depreciation)
  • IRC §168 (cost recovery)
  • HUD/FHA guidelines (MIP, DTI limits)
  • VA Lender Handbook (funding fee)
  • CFPB mortgage disclosure rules
  • State transfer tax schedules (all 50 states)
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Poland
  • Ustawa o PIT — art. 6 ust. 1a (ryczałt 8.5%/12.5%)
  • Ustawa o podatku od czynności cywilnoprawnych (PCC)
  • NBP — loan rate data (WIBOR)
  • GUS — rental market indicators
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Germany
  • GrEStG (Grunderwerbsteuergesetz) — all 16 Länder
  • §7 Abs.4 EStG (lineare AfA)
  • §7 Abs.5a EStG (degressive AfA)
  • §7b EStG (Sonder-AfA Neubau)
  • GNotKG (Notargebühren)
  • §656c BGB (Bestellerprinzip)
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France
  • CGI art. 150 U–150 VH (plus-value)
  • CGI art. 32 (micro-foncier)
  • D.Lgs. Loi de Finances 2025 n°2025-127 art.24
  • BOFiP — LMNP réel documentation
  • Barème IR 2026 (3 tranches post-réforme)
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Switzerland
  • DBG art. 33 (Schuldzinsenabzug, Säule 3a)
  • StHG (Steuerharmonisierungsgesetz)
  • Volksabstimmung 28.09.2025 (Eigenmietwert)
  • OFAS — Säule 3a Limite 2026: CHF 7.258
  • FINMA — Tragbarkeitsregeln (5% stress rate)
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Spain
  • TRLITPAJD RDLeg 1/1993 (ITP, AJD)
  • Ley 5/2019 de Crédito Inmobiliario (AJD banco)
  • AEAT — ITP rates all 19 CCAA (2026)
  • RD 1426/1989 (aranceles notariales)
  • RD 1427/1989 (aranceles registrales)
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Italy
  • Art. 3 D.Lgs. 23/2011 (cedolare secca)
  • DPR 917/1986 TUIR (IRPEF, scaglioni 2026)
  • Legge di Bilancio 2024 (affitti brevi 26%)
  • D.Lgs. 23/2011 art.9 (IMU base imponibile)
  • Agenzia delle Entrate Circolare 26/E/2011

When calculators are updated

Calculators are updated when the underlying legislation changes — not on a fixed publishing schedule. Each page displays a "Last reviewed" date. The triggers that prompt a review are:

Immediate

Rate changes

Any change to a tax rate, band threshold or official levy — SDLT, GrESt, ITP rates, IRPEF scaglioni, Pilier 3a limits. Updated within days.

Within 30 days

New legislation

Laws that alter the calculation structure — e.g. LF 2025 LMNP reintegration, UK Oct 2024 BTL surcharge, Italian Legge di Bilancio 2024.

Quarterly

Routine review

Each market is reviewed quarterly against official sources to catch minor changes, new guidance or court decisions that affect results.

What calculators do not cover

Being transparent about limitations is as important as being accurate about what is covered.

All 24 calculators with inline methodology

Every calculator below contains an expandable methodology section showing the exact formulas and sources for that specific tool.

Market Calculator Key sources
🇬🇧 UK BTL Rental Yield HMRC · PRA SS13/16 · Finance Act 2015
🇬🇧 UK Stamp Duty (SDLT) HMRC SDLT guidance · Oct 2024 rates
🇬🇧 UK Flip Profit HMRC CGT · Finance Act 2015
🇬🇧 UK HMO Yield Housing Act 2004 · HMRC
🇬🇧 UK Section 24 / Ltd Co Finance Act 2015 §24 · CTA 2010
🇬🇧 UK Rent vs Buy HMRC SDLT · Bank of England base rate
🇺🇸 US Mortgage Affordability HUD/FHA guidelines · VA Handbook · CFPB
🇺🇸 US Rental Property ROI IRS Pub. 946 · IRC §168 (MACRS)
🇺🇸 US Closing Costs State transfer tax schedules · CFPB
🇵🇱 PL Kredyt vs Wynajem Ustawa o PIT · NBP (WIBOR)
🇵🇱 PL Rentowność Najmu Ustawa o PIT art. 6 ust. 1a (ryczałt)
🇵🇱 PL Pakiet Inwestora Ustawa o PIT · GUS market prices 2026
🇩🇪 DE Grunderwerbsteuer GrEStG · GNotKG · §656c BGB
🇩🇪 DE Renditerechner §7 EStG · §21 EStG · GrEStG
🇩🇪 DE AfA-Rechner §7 Abs.4 · §7 Abs.5a · §7b EStG
🇫🇷 FR Rendement Locatif LMNP CGI · LF 2025 n°2025-127 · BOFiP
🇫🇷 FR Plus-Value Immobilière CGI art.150 U · LF 2025 art.24
🇨🇭 CH Amortissement FR DBG art.33 · OFAS · Votation 28.09.2025
🇨🇭 CH Amortisation DE DBG art.33 · StHG · BSV
🇪🇸 ES Calculadora ITP TRLITPAJD · Ley 5/2019 · AEAT 2026
🇮🇹 IT Cedolare Secca vs IRPEF D.Lgs.23/2011 · TUIR · LdB 2024
Transparency

Why publish the methodology?

Because a calculator you can't verify is just a black box. Every formula is published openly — both here and inside each individual calculator. If you spot an error or a rate that needs updating, email us.

All content is free to reference and cite for informational purposes. Results are estimates — not financial, tax or legal advice. Always consult a qualified professional before making property decisions.

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