Reverse-engineer a UK property walk-away price from operating net yield, profit-on-cost, cash-budget, and lender ICR/LTV ceilings across downside, base, and upside scenarios.

Maximum purchase price and walk-away price calculator

Reverse-engineer a UK property walk-away price from operating net yield, profit-on-cost, cash-budget, and lender ICR/LTV ceilings across downside, base, and upside scenarios.

Inputs

  • Annual gross rent (GBP)
  • Annual operating costs (GBP)
  • Exit value (GBP)
  • Fixed project costs excluding price (GBP)
  • Fixed cash costs excluding deposit (GBP)
  • Cash budget (GBP)
  • Maximum LTV (percent)
  • Lender stress rate (percent_per_year)
  • Lender ICR (percent)
  • Target operating net yield (percent)
  • Target profit on cost (percent)

Outputs

  • Recommended downside walk-away price (GBP)
  • Downside/base/upside maximum purchase price (GBP)
  • Binding constraint waterfall (constraint_list)

Calculation formula and denominator

Maximum purchase price is the lowest ceiling from target operating net yield, target profit on cost, available cash, and ICR/LTV loan capacity. The lowest ceiling is the binding constraint.

How to Use This Calculator

  1. Enter base rent, operating costs, exit value, project costs, and the cash available.
  2. Enter the lender scenario's LTV, stress rate, and ICR rather than relying on a universal borrower-type assumption.
  3. Set operating net-yield and profit-on-cost targets.
  4. Review downside, base, and upside ceilings for yield, profit, cash budget, and ICR/LTV.
  5. Use the lowest downside ceiling as the conservative walk-away price and verify every input before offering.

Worked example

Using £24,000 rent, £6,000 operating costs, £300,000 exit value, £50,000 project costs and the default targets, the calculator compares all four ceilings rather than choosing the most optimistic one.

Method and sources

Reviewed: 26 August 2026

  1. Enter evidence-backed base assumptions.
  2. Use the current lender’s ICR, stress rate and LTV.
  3. Treat the downside walk-away price as a scenario and inspect the binding constraint.

Sources

Assumptions and limitations

  • The result is not a valuation, offer recommendation or guaranteed refinance.
  • Transaction tax and unusual costs must be included in the fixed cost inputs and independently verified.

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