Rental Yield Calculator
Calculate gross and net rental yield for any Australian investment property. Include purchase costs and ongoing expenses for a complete picture.
Property Details
Annual Ongoing Costs
= $2,080/year
= $3,000/year
Loan Details (optional — for cash flow)
Gross Rental Yield
4.33%
Net Rental Yield
2.59%
Annual Rental Income
$26,000
before expenses
Annual Expenses
$10,380
ongoing costs
Annual Net Income
$15,620
before tax
Weekly Cash Flow
+$300
no loan entered
Income & Cost Breakdown
This calculator provides estimates only and does not constitute financial or tax advice. Yields, expenses, and cash flow will vary based on actual property performance. Consult a financial adviser or accountant for a personalised assessment.
Gross vs Net Yield Explained
Gross Rental Yield
(Weekly Rent × 52 / Purchase Price) × 100
A quick benchmark for comparing properties. Does not account for costs, so it overstates the true return. Most property listings and market reports quote gross yield.
Net Rental Yield
((Annual Rent − Annual Costs) / (Purchase Price + Buying Costs)) × 100
A more accurate measure that reflects what you actually earn after expenses. Net yield is typically 1–2% lower than gross yield once management fees, rates, insurance, and maintenance are accounted for.
When comparing investment properties, always use net yield for a like-for-like comparison. Properties with high gross yields can have surprisingly low net yields if costs are high (e.g., older buildings with high maintenance requirements or strata levies).
Frequently Asked Questions
What is rental yield?
Rental yield is the annual return on a property investment expressed as a percentage of its value. A higher yield means greater income relative to the property's cost. It is one of the key metrics investors use to compare investment properties.
What is the difference between gross and net rental yield?
Gross rental yield is simply the annual rental income divided by the purchase price, expressed as a percentage. Net rental yield factors in all ongoing costs (council rates, insurance, property management, maintenance, etc.) and is calculated against the full cost base (purchase price plus buying costs). Net yield gives a more realistic picture of your actual return.
What is a good rental yield in Australia?
Gross rental yields in Australian capital cities typically range from 3–6%. Sydney and Melbourne often yield 2.5–4% gross, while regional areas and higher-density markets like Brisbane, Adelaide, and Perth can yield 4–6%+. 'Good' depends on your strategy — higher yields often come with lower capital growth prospects, and vice versa.
What is cash flow and why does it matter?
Cash flow is the money left over after all expenses (including loan repayments) are paid from rental income. A positively geared property generates cash flow surplus each week. A negatively geared property costs more to hold than it earns in rent — the shortfall is often offset against other income for tax purposes.
What costs should I include in my yield calculation?
Key ongoing costs include council rates, water rates, landlord insurance, property management fees (typically 7–10% of rent in most states), maintenance and repairs allowance (commonly 0.5–1% of property value per year), strata levies if applicable, and land tax if applicable. Purchase costs include stamp duty, legal/conveyancing fees, and building inspection fees.