To calculate the property's ROI: If you spend around 20% of your earnings on rent, you could generally spend more on non-essentials or save more. However, this doesnât mean that 30% is the only option: 20% THRIFTY. Rental Yield Calculator Monthly Rental Return (£) How to Calculate Gross Rental Yield. Please use the following calculator and quick reference guide to assist in calculating rental income from IRS Form 1040 Schedule E. It provides suggested guidance only and does not replace Fannie Mae or Freddie Mac instructions or applicable guidelines. You take the âAnnual rental incomeâ and divide by the âProperty valueâ. Use this calculator to quickly and easily calculate the gross rental yield of any property. Gross rental yield is commonly used when looking at returns, as it is simple to calculate and lets you easily compare properties with different values and rental returns. How you can calculate the different types of rental yields and returns for buy to let There are a number of ways in which you can calculate rental yield from a property. Sample Rental Income Tax Return. You earned \$12,000 in total rental income for the year at \$1,000 per month. Our rental income calculator accounts for both your up-front investment (down payment, closing costs, initial renovations) and your ongoing costs. Then multiply this number by 100 to get a percentage value. Rental Yield. Rental yield is the gross rental income a property generates in relation to the investmentâs total purchase price. The net rental yield of the property you currently own is 2.41%. It can be determined by dividing the annual rental income by the total purchase price and is always converted to a percentage. Inputs youâll need include property value, monthly income, property expenses, and vacancy rate. Here is the gross rental yield calculator. Say, out of the 18 units in the building, you expect 2 of those to be empty on average at any time. Simply enter the purchase price of the property and the weekly rent and it will automatically calculate the gross rental yield for you. For example, our rental income calculator starts with 30% as a standard for how much of your income you should set aside for rent. Your monthly rental income stream is \$2,600, and youâre in the 22% marginal tax bracket. A rental property calculator helps a property owner determine the return on investment, cap rate, and cash flow on a rental property. And not just obvious costs like taxes and insurance, but the nagging expenses that will pop up in the real world: vacancy rates, ongoing maintenance and repairs, property management fees. Rent p/m £850 x 12/£200,000 = Gross yield 5.10% Net Yield is the annual return on investment after the deduction of taxes and expenses. 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