Rental Yield Calculator
Calculate gross and net rental yield on your Australian investment property.
YOUR DETAILS
Gross Rental Yield
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| Net Rental Yield | — |
| Annual Rental Income | — |
| Net Annual Income | — |
| Weekly Return | — |
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Understanding Rental Yield
Rental yield is the annual return you receive from a property as a percentage of its value. It's one of the most important metrics for evaluating an investment property — alongside capital growth potential and cash flow.
Gross Rental Yield
The simplest measure: (Annual Rent ÷ Property Value) × 100. It tells you the raw income return without accounting for any costs. Useful for quickly comparing properties but doesn't reflect actual profitability.
Net Rental Yield
A more realistic measure: ((Annual Rent − Annual Expenses) ÷ Property Value) × 100. Expenses typically include:
- Property management fees: 7–10% of gross rent
- Council rates: $1,000–$2,500/year
- Water rates: $800–$1,500/year
- Landlord insurance: $1,200–$2,000/year
- Maintenance and repairs: 1% of property value/year (rule of thumb)
- Strata/body corporate levies (for units): varies widely
What's a Good Yield in Australia?
Rental yields vary significantly by location and property type:
- Sydney/Melbourne: 2.5–3.5% gross (expensive markets, lower yields)
- Brisbane/Adelaide/Perth: 4–5.5% gross
- Regional areas: 5–8% gross (higher yields, lower capital growth)
- Units vs houses: Units generally yield 0.5–1% more than houses
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Frequently Asked Questions
What is a good rental yield in Australia?
A gross yield above 4–5% is generally considered solid for Australian investment properties. However, what's "good" depends on your investment strategy — a Sydney investor might accept 2.5% yield if they expect strong capital growth, while a regional investor might target 7%+ yield with lower growth expectations.
How do I calculate net rental yield?
Net rental yield = (Annual rent − Annual expenses) ÷ Property value × 100. For example, $26,000 annual rent − $8,000 expenses = $18,000 net income. Divided by $650,000 property value = 2.77% net yield.
Does rental yield include mortgage repayments?
No. Rental yield calculations do not include mortgage repayments — yield measures the return on the total property value, not just your equity. For cash flow analysis, you would deduct mortgage repayments from rental income to determine whether the property is positively or negatively geared.
How do I improve my rental yield?
You can improve yield by increasing rent (ensuring it's at market rate), reducing vacancies, adding value through improvements that justify higher rent, and minimising expenses through efficient management. Buying in higher-yielding markets is the most direct approach.
Disclaimer: This calculator provides estimates for illustrative purposes. Actual rental returns will vary based on occupancy rates, market conditions, and specific expenses. This is not financial or investment advice. Always conduct thorough due diligence before making property investment decisions.
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