Finance & property Australia
Rental Yield Calculator Australia
Rental yield measures the annual return from rent as a percentage of what the property cost. Gross yield uses rent alone, and net yield takes off vacancy and the costs of holding the property. This calculator works out both, and a yield on the total purchase cost.
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Optional. Use the stamp duty calculator for your state.
Gross rental yield
—Annual rent
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Rent after vacancy
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Annual costs
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Net annual income
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Net yield
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Net yield on total cost
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Where the yield comes from
How do I calculate rental yield?
Gross yield is annual rent divided by the purchase price: $600 a week is $31,200 a year, which on $700,000 is 4.46%. Net yield subtracts vacancy, management and running costs first, and for these figures comes to 3.06%.
Gross and net
Gross yield is useful for comparing properties quickly, because it needs only a price and a rent. Net yield is closer to what you actually receive and is what to compare against a savings rate or another investment.
Keep the two straight when reading a listing: a 5% gross yield in a regional town and a 3.5% gross yield in a capital are not directly comparable until you know the costs and the growth.
What to include in costs
Council rates, water, landlord insurance, repairs and maintenance, strata levies, land tax and property management are the usual ones. A reasonable maintenance allowance is a percentage of the value each year, which varies by the age of the property.
For a full investment picture including loan interest and tax, use the investment property calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
gross yield = weekly rent × 52 ÷ purchase pricerent after vacancy = weekly rent × (52 − vacant weeks)net income = rent after vacancy − management fee − other annual costsnet yield = net income ÷ purchase price; on total cost, divide by price + purchase costs
Gross yield is the figure in advertising and the one agents quote, but it overstates what you keep, because it ignores vacancy, management, insurance, rates, maintenance and, where relevant, strata. A property at a 4.4% gross yield can net 3% or less after costs, before the interest on the loan.
Yield also ignores capital growth, which is where most investors expect their return. A low yield with strong growth can beat a high yield with none, so yield is one input, not the verdict.
A worked example
A $700,000 property renting for $600 a week, vacant 2 weeks, 7% management, $6,500 of other costs and $35,000 of purchase costs.
- Annual rent$31,200
- Gross yield4.46%
- Rent after vacancy$30,000
- Management, 7%$2,100
- Other costs$6,500
- Net income$21,400
- Net yield3.06%
A gross yield of 4.46% and a net yield of 3.06%.
Interest on any loan is not included: it is the largest cost for most investors.
Yield versus return
Total return is yield plus capital growth, minus costs and tax. Yield is only the income part. Focusing on it can steer you toward properties with weaker growth, so compare both before you buy.
What it leaves out
Loan interest, tax and depreciation are not in this yield. They change the cash flow but not the property's own income return.
What this calculator does not do
- Excludes loan interest, tax and depreciation
- A single year's income, not a forecast
- Costs are your estimates
- Capital growth is not part of yield
Common questions
What is a good rental yield in Australia?
It varies by city and property type. Capital-city houses often yield 3% to 4% gross and units or regional areas more. Compare net yield, and consider growth as well.
What is the difference between gross and net yield?
Gross uses rent only. Net subtracts vacancy and running costs.
How do I work out yield on a property I already own?
Use its current value in place of the purchase price for the return on the property today.
Does yield include the mortgage?
No. It measures the property's income, not the financing.
Should I include stamp duty?
For the return on what you actually spent, yes. The 'total cost' net yield includes purchase costs.
Where these numbers come from
- ATO — rental properties Which rental income and expenses are assessable and deductible
- MoneySmart — home loans ASIC's independent guidance on borrowing, repayments and refinancing
Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.
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