Free tool
Rental yield calculator
Work out the gross yield, net yield and weekly cash flow of any Australian investment property. Defaults are a typical $650k middle-ring house; change any number and the results update instantly.
Don't know the rent? Estimate it from your postcode. Negative cash flow may be partly offset by tax deductions; see our negative gearing guide.
How the calculation works
Gross yield = (weekly rent × 52) ÷ price × 100
Net yield = (rent collected − annual costs) ÷ price × 100
Cash flow = net rental income − annual interest
Rent collected allows for vacancy, and the property management fee is charged on collected rent only. Interest is shown on an interest-only basis, which is how most investors assess holding cost. Cash flow is before tax: depreciation and negative gearing can improve it materially. For a full walk-through with worked examples, read how to calculate rental yield.
Frequently asked questions
- What is a good rental yield in Australia?
- Most capital-city houses return a gross yield of 3% to 4.5%, and units 4% to 5.5%. Above 5% gross is generally considered strong for a capital city. Regional and mining towns can exceed 7%, but usually with higher vacancy and weaker capital growth.
- What is the difference between gross and net rental yield?
- Gross yield is annual rent divided by the purchase price, before any costs. Net yield subtracts ongoing costs such as property management, council rates, insurance, strata, land tax, maintenance and vacancy. Net yield is typically 1 to 2 percentage points lower than gross.
- Does rental yield include mortgage interest?
- No. Yield measures the property's return independent of how it is financed. This calculator shows cash flow after interest separately so you can see both.
- How do I calculate rental yield?
- Gross rental yield = (weekly rent × 52) ÷ purchase price × 100. Net rental yield = (annual rent collected − annual costs) ÷ purchase price × 100.