Rental Yield Calculator for Australian Investors
Work out the rental yield on any Australian property in seconds. Enter the price and the weekly rent for your gross yield, then add your holding costs to see the net yield, the figure that tells you what the property really returns.
Yield is one of the fastest ways to compare investment properties and sense check whether the rent stacks up against the price you are paying.
Annual income: $27,040
Annual return before expenses
Annual return after expenses
Gross Rental Yield: Calculated as (Annual Rental Income ÷ Property Price) × 100. This shows the return before expenses.
Net Rental Yield: Calculated as ((Annual Rental Income - Annual Expenses) ÷ Property Price) × 100. This shows the actual return after costs.
Note: Higher yields often indicate higher risk or lower capital growth areas. Consider both yield and capital growth when evaluating investments.
Gross Yield Guide
Net Yield Guide
How the rental yield calculator works
- 1
Enter the property price
Use the purchase price if you are comparing a deal, or the current value if you are tracking a property you already own.
- 2
Enter the weekly rent
Put in the rent the property earns each week. The calculator annualises it to your gross rental income.
- 3
Read your gross yield
This is your annual rent as a percentage of the price, before any costs. It is the quick number for comparing properties.
- 4
Turn on net yield and add expenses
Add council and water rates, insurance, property management, strata and a maintenance allowance to see the return after costs.
- 5
Compare gross and net
The gap between the two shows how much your holding costs eat into the headline return. Net yield is the honest figure.
A worked Australian example
Say you are looking at a $600,000 property that rents for $520 a week. Here is how the yield works out.
- Annual rent ($520 x 52)
- $27,040
- Property price
- $600,000
- Gross rental yield
- 4.51%
- Annual expenses (rates, insurance, management, upkeep)
- -$8,000
- Net annual income
- $19,040
- Net rental yield
- 3.17%
The property returns 4.51% gross. Once the roughly $8,000 in annual holding costs come out, the net yield is 3.17%. Net yield is the number that matters, because it reflects what the property actually returns relative to its price. From there you can weigh the yield against the capital growth you expect from the area.
What is rental yield?
Rental yield is the annual rent a property earns expressed as a percentage of its value. It tells you how hard your money is working as income, separate from any growth in the property's value.
There are two versions. Gross yield uses the rent alone. Net yield takes your holding costs out first, so it reflects the return you actually keep. Most investors quote gross yield because it is simple, but net yield is the one that matters for your cash flow.
Gross yield versus net yield
Gross yield is your annual rent divided by the property price, times 100. A $600,000 property renting at $520 a week earns $27,040 a year, which is a gross yield of 4.51%.
Net yield does the same calculation after subtracting your annual costs: council and water rates, landlord insurance, property management fees, strata or body corporate fees, and repairs and maintenance. Those costs commonly add up to a few thousand dollars a year, which is why net yield usually lands one to two percentage points below gross.
What is a good rental yield in Australia?
As a rough guide, a gross yield around 4% to 6% is typical for Australian residential property, with net yield usually landing near 3% to 5%. Below that range is considered low yield, and above it is high yield.
There is no single right number, because yield trades off against capital growth. Higher yields are often found in regional towns and units, while many capital city houses run lower yields but have historically delivered stronger growth. The right yield depends on whether you are investing for income, for growth, or for a balance of both.
Yield is only half the picture
Yield measures income, not total return. A property's total return is its rental yield plus its capital growth, and for most Australian investors growth does the heavy lifting over the long run.
Use yield to make sure a property pays its way and to compare options on a like-for-like basis, then look at the growth prospects of the area and your after-tax position before you decide. As always, this calculator gives estimates only, not financial advice.
Frequently asked questions
How do you calculate rental yield?
Gross rental yield is annual rent divided by the property price, times 100. For example, $27,040 of annual rent on a $600,000 property is a gross yield of 4.51%. Net yield does the same after subtracting your annual holding costs.
What is the difference between gross and net rental yield?
Gross yield uses the rent only, so it is higher and easier to quote. Net yield subtracts your costs, such as rates, insurance, management and maintenance, so it reflects the return you actually keep. Net yield is usually one to two percentage points lower than gross.
What is a good rental yield in Australia?
As a general guide, a gross yield of about 4% to 6% is typical for Australian residential property, with net yield around 3% to 5%. What counts as good depends on the area and on how much you are relying on income versus capital growth.
Is a higher rental yield always better?
Not necessarily. Very high yields are often found in areas with weaker capital growth or higher risk. A balanced investment weighs yield against the growth prospects of the location, so the highest yield is not automatically the best buy.
Should I use the purchase price or current value?
Use the purchase price when you are comparing a property you might buy, since that is what you would pay. Use the current value when you are tracking a property you already own, to see the yield on what it is worth today.
Does rental yield include capital growth?
No. Rental yield measures income only. Your total return is the rental yield plus any capital growth in the property's value. The two are separate, and a property can have a modest yield but strong growth, or the reverse.
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