Finance & business New Zealand
Rental Yield Calculator NZ
Rental yield is the rent as a percentage of what the property cost. Gross yield uses rent alone, and net yield takes off vacancy and the costs of owning. This calculator works out both for a New Zealand property, using weekly rent, which is how rents are quoted here.
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Often 7% to 9% plus GST of the rent collected, check your agreement.
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 in NZ?
Gross yield is weekly rent times 52 divided by the price: $620 a week is $32,240 a year, which on $800,000 is 4.03%. Net yield takes off vacancy, property management and running costs first, and on these figures is 2.59%.
Gross and net
Gross yield is useful for comparing properties quickly. Net yield is closer to what you receive and is what to compare with a term deposit or another investment. A 5% gross yield in a smaller centre and a 3.5% gross yield in Auckland are not comparable until you know the costs and growth.
Yield is only part of the return. Capital growth, tax and leverage matter as much.
What to count as costs
Council and water rates, landlord insurance, repairs and maintenance, body corporate levies, property management and letting fees are the usual ones. Healthy Homes standards may add costs for older properties, such as insulation and heating, which should be in your repair budget.
For the cost of the loan, use the mortgage 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 − other annual costsnet yield = net income ÷ price; on total cost, divide by price + purchase costs
Gross yield is the figure quoted in listings and it overstates what you keep. Management, rates, insurance, repairs and any body corporate levies take a large share, and vacancy removes weeks of rent. A property with a 4.0% gross yield often nets under 3% before the interest on the loan.
In New Zealand interest on a rental loan is again deductible in full from 1 April 2025 for most residential rentals, which changes the after-tax return but not the property's own yield, which is shown here.
A worked example
An $800,000 property renting for $620 a week, 2 weeks vacant, 8% management, $7,800 of other costs.
- Annual rent$32,240
- Gross yield4.03%
- Rent after vacancy$31,000
- Management, 8%$2,480
- Other costs$7,800
- Net yield2.59%
A gross yield of 4.03% and a net yield of 2.59%.
Loan interest and tax are not part of the yield.
Rental income and tax
Rent is taxable income, and you can deduct costs including interest, rates and insurance, with depreciation on chattels but not on buildings. The bright-line test can tax a gain on a quick sale; see the bright-line calculator.
What it leaves out
Loan interest, tax, depreciation and the effect of rent increases are not in this yield. Rents rise over time, so yield on cost improves for a long-held property.
What this calculator does not do
- Excludes loan interest and tax
- A single year's income
- Costs are your estimates
- Capital growth is not part of yield
Common questions
What is a good rental yield in NZ?
It varies by area. Auckland and Wellington often yield 3% to 4% gross, with higher yields in smaller centres. Compare net yield and growth prospects.
How is gross yield calculated?
Weekly rent times 52 divided by the purchase price.
What is net yield?
Rent after vacancy and costs, divided by the price.
Does yield include the mortgage?
No. It measures the property's income, not the financing.
Are Healthy Homes costs included?
Add them to the other costs figure if your property needs work.
Where these numbers come from
- Inland Revenue — rental income Rental income and what you can deduct
- Tenancy Services Rents, bonds and landlord obligations, including Healthy Homes
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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