Let’s take a look at how to calculate net rental yield for your potential property. Your annual return was $5,016.84 ($418.07 x 12 months). It can be determined by dividing the annual rental income by the total purchase price and is always converted to a percentage. Rental Yield Calculator Monthly Rental Return (£) 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. You earned $12,000 in total rental income for the year at $1,000 per month. However, this doesn’t mean that 30% is the only option: 20% THRIFTY. A rental property calculator helps a property owner determine the return on investment, cap rate, and cash flow on a rental property. Use this calculator to quickly and easily calculate the gross rental yield of any 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. 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. Sample Rental Income Tax Return. Rental Yield. To calculate the property's ROI: How to Calculate Gross Rental Yield. 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. Here are your expenses: $10,000 in mortgage interest; $2,000 in insurance To get an idea of what your rental income might look like on your tax return, let’s do some math: Let’s say you bought a property for $300,000. Your monthly rental income stream is $2,600, and you’re in the 22% marginal tax bracket. If you spend around 20% of your earnings on rent, you could generally spend more on non-essentials or save more. Say, out of the 18 units in the building, you expect 2 of those to be empty on average at any time. Then multiply this number by 100 to get a percentage value. You take the ‘Annual rental income’ and divide by the ‘Property value’. The net rental yield of the property you currently own is 2.41%. 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. Rental yield is the gross rental income a property generates in relation to the investment’s total purchase price. The rental yield can help determine the long-term viability of a given investment. Please use the following calculator and quick reference guide to assist in calculating rental income from IRS Form 1040 Schedule E. 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