Rental Yield Calculator
CalculatorCalculate gross and net rental yield on any Australian investment property. Compare yields across suburbs, factor in expenses, and see if your property stacks up.
Rental yield is the single most important metric for property investors — it tells you how much income a property generates relative to its cost. Gross yield is a quick comparison tool, but net yield (after all expenses) reveals the true return. Australian capital city yields typically range from 2.5% to 5%, while regional areas can reach 6-8%. Understanding yield helps you compare properties, suburbs, and even cities on an apples-to-apples basis — regardless of purchase price.
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Real-World Examples
Inner-City Apartment
2-bed apartment, $650,000, renting at $580/week with $12,000/year expenses.
Gross yield: 4.64%. Net yield (after expenses): 2.80%. After vacancy (2 weeks): 2.62%. This is a capital-growth play — the yield alone won't cover costs.
Regional House
3-bed house in regional town, $380,000, renting at $420/week with $6,000 expenses.
Gross yield: 5.75%. Net yield: 4.18%. After vacancy (2 weeks): 3.96%. Strong yield — but verify tenant demand and capital growth prospects.
Frequently Asked Questions
Glossary
How to Use
- 1Enter the property purchase price.
- 2Add the weekly rent (actual or estimated).
- 3Include annual expenses: rates, strata, insurance, maintenance.
- 4Optionally add purchase costs for true cost yield.
- 5Set expected vacancy in weeks per year.
- 6See gross yield, net yield, and cash flow breakdown.
Key Information
- Gross yield formula: (Weekly rent × 52) ÷ Purchase price × 100
- Net yield formula: (Annual rent − Annual expenses) ÷ (Purchase price + Purchase costs) × 100
- Australian capital city gross yields average 3-4.5% (2026).
- Regional areas often yield 5-8% but may carry higher vacancy risk.
- A yield above 5% is generally considered strong in Australian markets.
Pro Tips
- Always use NET yield for real comparisons — gross yield hides significant cost differences between properties.
- Factor in vacancy: even 2 weeks/year reduces yield by ~4%.
- Compare yield to your mortgage interest rate — if yield > mortgage rate, the property is positively geared before expenses.
- High yield doesn't always mean a good investment — balance yield with capital growth potential.
Avoid These Mistakes
- Using gross yield only — it ignores rates, insurance, management fees, and maintenance that can eat 30-40% of rent.
- Forgetting vacancy — no property is rented 52 weeks every year.
- Not including purchase costs — stamp duty and legal fees are money you spent on the investment.
- Comparing yields across different property types without adjusting for risk.
Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.
Last updated: February 2026