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Rental Yield Calculator

Calculator

Calculate gross and net rental yield on any Australian investment property. Compare yields across suburbs, factor in expenses, and see if your property stacks up.

Free to useNo data storedAI insightsUpdated: February 2026

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.

Enter Your Details

Enter Your Details

$

Total purchase price of the property

$

Weekly rental income (or expected rent)

$

Council rates, strata, insurance, management fees, maintenance

$

Stamp duty, conveyancing, inspections

Average weeks per year the property sits vacant

%

Percentage of rent charged by the property manager

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

Gross Rental Yield
Annual rental income divided by the property purchase price, expressed as a percentage. Does not account for expenses.
Net Rental Yield
Annual rental income minus all expenses, divided by total acquisition cost. The true return on investment.
Vacancy Rate
The percentage of time a rental property sits empty between tenants. National average is around 2-3%.

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

How to Use
  1. Enter the property purchase price.
  2. Add the weekly rent (actual or estimated).
  3. Include annual expenses: rates, strata, insurance, maintenance.
  4. Optionally add purchase costs for true cost yield.
  5. Set expected vacancy in weeks per year.
  6. See 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.
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