Rental Yield Calculator
Compare gross and net yield across properties before you make an offer.
Gross yield
4.03%
Net yield: 2.82%
About this calculator
This rental yield calculator works out both the gross and net rental yield on any Australian investment property. Gross yield gives you a quick like-for-like comparison between listings; net yield tells you what the property is actually earning once the holding costs are stripped out.
How rental yield is calculated
Gross yield is annual rent divided by the purchase price, expressed as a percentage: (weekly rent × 52) ÷ purchase price × 100. Net yield subtracts the recurring ownership costs — council rates, water, building insurance, landlord insurance, strata levies, property management, repairs and maintenance, and a vacancy allowance — before dividing by the all-in acquisition cost (purchase price plus stamp duty and acquisition costs if entered).
Assumptions and limitations
- Pre-finance and pre-tax — loan interest and tax effects are excluded.
- Rent is assumed to be held constant for the year — no CPI uplift.
- Maintenance is treated as a recurring expense, not a capital improvement.
- No depreciation, negative-gearing benefit or land-tax modelling.
When to use it
Use this calculator before you make an offer on an investment property, when comparing properties across suburbs, or to test how a rent increase or strata jump would change your net return. For a cash-on-cash view that includes your deposit and loan repayments, move on to our Cash-on-Cash Return calculator.
Frequently asked questions
- What is a good rental yield in Australia?
- Gross yields of 3–4% are typical for capital-city houses, 4–5% for capital-city units, and 5–7%+ for regional and outer-suburban properties. Net yields are usually 1.0–1.5 percentage points below the gross figure once council rates, insurance, management fees and maintenance are deducted.
- Gross vs net rental yield — which matters?
- Gross yield is useful for quick comparisons between listings; net yield is what actually matters for your cash flow and tax position. Always look at both. A property with a great gross yield can have a poor net yield if strata fees, council rates or maintenance are unusually high.
- Should I include capital growth in yield?
- No — rental yield is an income metric only. Capital growth is your other return stream. Combine the two when assessing total return (yield + growth = total return), and remember that high-yield markets historically have lower growth, and vice versa.
- What vacancy rate should I assume?
- Use 2 weeks per year (≈4% vacancy) for capital-city metro properties and 3–4 weeks (6–8%) for regional or higher-risk locations. Check SQM Research or CoreLogic vacancy data for your specific suburb.
- Does this include interest, depreciation or tax?
- No. Rental yield is a pre-finance, pre-tax measure of the property's income productivity. To assess after-tax cash flow, you need to add loan interest, depreciation and your marginal tax rate — use our Cash-on-Cash Return calculator for the cash side of the equation.
Estimates are indicative only and intended as a starting point. Actual figures depend on lender policy, market conditions, professional fees, taxes and other costs. Always confirm with a licensed broker, accountant, valuer or solicitor before acting.