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 expected return instantly.
How to Calculate Rental Yield
Rental yield measures the annual return on a property investment as a percentage of the purchase price. There are two common measures:
- Gross Yield = (Annual Rent ÷ Purchase Price) × 100. This is the simplest measure and does not account for any holding costs.
- Net Yield = ((Annual Rent − Total Expenses − Vacancy Cost) ÷ Purchase Price) × 100. This gives a more realistic picture of your actual return after deducting council rates, insurance, management fees, maintenance, and vacancy.
What Is a Good Rental Yield in Australia?
In Australia, a gross rental yield of 4–5% is considered average. Yields above 6% are generally regarded as strong, while yields below 3% are on the lower end — though these properties may offer higher capital growth over time. Capital cities like Sydney and Melbourne typically have lower rental yields but stronger long-term capital growth, while regional areas and smaller capital cities often deliver higher rental yields with more modest price appreciation.
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