Leverage allows you to control a large asset with a relatively small amount of capital. In property investment, this means using a mortgage to purchase a property while only putting down a portion of the total value as a deposit.

When property values increase, you benefit from appreciation on the entire property value, not just your deposit amount. This can significantly amplify your returns.

For example, if you purchase a £200,000 property with a 25% deposit (£50,000) and the property appreciates by 10%, you gain £20,000 in equity while only investing £50,000 – that’s a 40% return on your investment!

This calculator helps you visualise how different deposit percentages affect your potential returns, allowing you to make more informed investment decisions.