Sample Rental Income Tax Return. 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. Your monthly rental income stream is $2,600, and youâre in the 22% marginal tax bracket. Simply enter the purchase price of the property and the weekly rent and it will automatically calculate the gross rental yield for you. Here is the gross rental yield calculator. How to Calculate Gross Rental Yield. Letâs take a look at how to calculate net rental yield for your potential property. The net rental yield of the property you currently own is 2.41%. Your annual return was $5,016.84 ($418.07 x 12 months). You take the âAnnual rental incomeâ and divide by the âProperty valueâ. Rental Yield Calculator Monthly Rental Return (£) 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. Rental yield is the gross rental income a property generates in relation to the investmentâs total purchase price. For example, our rental income calculator starts with 30% as a standard for how much of your income you should set aside for rent. The rental yield can help determine the long-term viability of a given investment. It can be determined by dividing the annual rental income by the total purchase price and is always converted to a percentage. Use this calculator to quickly and easily calculate the gross rental yield of any property. Our rental income calculator accounts for both your up-front investment (down payment, closing costs, initial renovations) and your ongoing costs. To calculate the property's ROI: 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. Inputs youâll need include property value, monthly income, property expenses, and vacancy rate. However, this doesnât mean that 30% is the only option: 20% THRIFTY. Rental Yield. Say, out of the 18 units in the building, you expect 2 of those to be empty on average at any time. 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. If you spend around 20% of your earnings on rent, you could generally spend more on non-essentials or save more. A rental property calculator helps a property owner determine the return on investment, cap rate, and cash flow on a rental property. Then multiply this number by 100 to get a percentage value. 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