Free Rental Yield Calculator
This rental yield calculator works out the gross and net rental yield on an investment property from its price, weekly rent and running costs.
Rental yield calculator examples
| Price | Weekly rent | Gross yield | Net yield |
|---|---|---|---|
| $450,000 | $450 | 5.2% | 3.8% |
| $650,000 | $600 | 4.8% | 3.42% |
| $850,000 | $700 | 4.28% | 2.92% |
| $1,200,000 | $850 | 3.68% | 2.34% |
Rental yield formula
- Gross yield = (weekly rent × 52) ÷ price × 100
- Net yield = (rent received − yearly costs) ÷ price × 100
Worked example: gross vs net rental yield
A $650,000 unit rents for $600 a week. A full year of rent is $31,200, so the gross yield is $31,200 ÷ $650,000 = 4.8%.
Now allow for 2 empty weeks between tenants, so the rent received is $30,000. Take off $7,800 of rates, strata, insurance, management and repairs, and $22,200 is left. The net yield is $22,200 ÷ $650,000 = 3.42%.
Comparing yield with your loan rate
If the net yield is lower than the interest rate on the money you borrow, the rent will not cover the loan interest and the property runs at a loss before tax. That loss is what makes a property negatively geared. Use the negative gearing calculator to see the after-tax cost, and remember that buying costs such as stamp duty are not in the yield.
Frequently asked questions
How does the rental yield calculator work?
Gross rental yield is the yearly rent (weekly rent × 52) divided by the property price. Net rental yield takes off your yearly costs and any vacant weeks first. Both are shown as a percentage of the price.
What is a good rental yield in Australia?
It depends on the location and property type. Houses in capital cities often have lower yields but stronger long-term growth; units and regional properties often have higher yields. Compare net yield with your loan interest rate to see whether a property is likely to be positively or negatively geared.
Which costs should I include?
Council and water rates, strata or body corporate fees, landlord insurance, property management fees, repairs and maintenance, and land tax if it applies. Loan interest is left out so you can compare properties regardless of how they are financed.
Related calculators
- Negative gearing calculator
- Capital gains tax calculator
- Stamp duty calculator
- Compound interest calculator