Rental Yield Calculator
Calculate the gross and net rental yield on any Australian investment property. Enter your purchase price, weekly rent, and annual expenses to see your return instantly.
What This Rental Yield Calculator Helps You Measure
Use this rental yield calculator to estimate how hard an investment property is working before you commit to the purchase. In one view, you can compare gross yield against net yield, pressure-test your assumptions, and see how rent, price, and costs change the return. For Australian investors in 2026, that matters because a property that looks attractive on headline rent can produce a much weaker result once management fees, insurance, rates, repairs, and a realistic vacancy rate are accounted for.
This page is built for investors who want a faster way to compare deals, shortlist suburbs, or sense-check a scenario from a broker, buyer's agent, or listing agent. The most important inputs are purchase price, weekly rent, and annual ownership costs. If you only check the top-line rent, you can easily overrate a property that carries thin margins after expenses. That is why the calculator separates gross yield from the more decision-useful net yield.
The rental yield calculator is also helpful when you already own a property and want to benchmark whether a rent review, refinance, or cost reduction is changing the return enough to matter. A property generating $650 a week in rent produces about $33,800 a year before costs. On a $650,000 purchase that is roughly 5.2% gross yield. But if annual costs total $8,000, net income drops to $25,800 and net yield falls to around 4.0%, which is a very different signal for portfolio planning andcapital growthtrade-offs.
How to Use the Calculator
Start by entering the purchase price and expected weekly rent as accurately as possible. Then add annual costs so the calculator can show both a gross yield figure and a more realistic net result. For the best output, include property management fees, council rates, insurance, regular maintenance, and a sensible allowance for vacancy instead of leaving costs at zero.
Once the result appears, treat the gross figure as your quick comparison number and the net figure as your decision-grade number. If the gross yield looks healthy but the net result drops sharply after costs, that is usually a sign you need to revisit the rent assumption, maintenance burden, or ownership structure. Compare a few scenarios before moving on: higher rent, slightly lower purchase price, and different annual cost levels. That will tell you whether the property is resilient or only works under optimistic assumptions.
Worked example
A $650,000 property renting for $650 a week produces about $33,800 annual rent. If annual costs total $8,000, net income falls to $25,800 and net yield lands around 4.0% instead of 5.2%. Use our calculator above to swap in your actual numbers.
Build better context around your result with these rental-yield guides and examples.
A dedicated rental-yield guide is not live yet, so this page currently links only to published cluster articles.
How do you calculate rental yield on an investment property?
Gross rental yield is calculated as annual rent divided by property value, multiplied by 100. For example, a property worth $650,000 renting for $650 a week produces about $33,800 a year in rent and a gross yield of 5.2%. Use our calculator above to test the exact result using your own purchase price and weekly rent at current 2026 settings.
What is the difference between gross and net rental yield?
Gross yield uses rent and property value only, while net yield also subtracts annual costs such as council rates, insurance, management fees, maintenance, and vacancy allowance. On a $650,000 property with $33,800 annual rent and $8,000 annual costs, gross yield is 5.2% but net yield falls to about 4.0%. Use our calculator above to compare both figures side by side.
What is included in a net rental yield calculation?
A net rental yield calculation should include recurring holding costs that directly reduce rental income, such as property management fees, insurance, rates, repairs, and other annual ownership costs. If your annual rent is $33,800 and your annual costs total $8,000, the calculator uses $25,800 as the net income figure before dividing by property value. Use our calculator above to adjust each cost line and see the exact effect on your current result.
What is a good rental yield in Australia?
A good rental yield depends on the suburb, property type, vacancy risk, financing costs, and your growth strategy, so there is no single national benchmark that fits every investor. A property returning 5.2% gross yield can still be a weak deal if high costs drag the net yield closer to 3.5% or lower. Use our calculator above to compare gross and net yield before making a 2026 investment decision.
Is 4.5% rental yield good for an investment property?
A 4.5% gross yield can be workable, but the stronger test is what remains after annual costs and whether the property still meets your cash-flow target. If a $700,000 property earns 4.5% gross yield, that is about $31,500 a year in rent before expenses. Use our calculator above to see whether your current 2026 costs still leave an acceptable net yield.
How do expenses change net rental yield?
Every extra dollar of annual expenses reduces the income used in your net yield calculation, so even a small cost increase can materially change your percentage return. On a $650,000 property, lifting annual costs from $6,000 to $9,000 cuts net income by $3,000 and reduces net yield by about 0.46 percentage points. Use our calculator above to model management fees, insurance, rates, and repairs with current numbers.
What is the 1% rule and does it work in Australia?
The 1% rule is a quick screening shortcut where investors compare monthly rent to 1% of the property price, but it is only a rough filter and not a final decision tool. On a $650,000 property, the 1% rule would imply $6,500 monthly rent, which is far above what many Australian markets actually deliver in 2026. Use our calculator above instead of relying on a blunt rule, because it shows the real gross and net yield from your own figures.
Should I prioritise rental yield or capital growth?
Most investors need to balance both, because a high-yield property can still underperform if maintenance, vacancy, or weak long-term growth erode total returns. For example, a 5.5% yield with flat value growth may not outperform a 4.2% yield property in a stronger market once equity growth is considered. Use our calculator above first, then compare the result with your broader 2026 portfolio strategy and cash-flow goals.
Go Beyond Calculations
A rental yield result is useful, but real investing decisions need the full picture. PropBoss tracks rent, expenses, cash flow, and performance across your entire portfolio so you can move from one-off scenarios to ongoing property decisions.