Rental yield calculator Australia
What is rental yield?
Rental yield is the annual rent a property earns, expressed as a percentage of what it's worth. It's the quickest way to compare the income potential of two properties side by side - a $600 per week rental on a $500,000 unit is working harder, on paper, than the same rent on an $800,000 house. It's the starting point for any investor conversation, not the finish line.
Calculate your
rental yield
Your results
The full bar is your gross yield. Holding costs, management and vacancy erode it down to the net yield you actually keep.
Estimates only. This calculator provides general information and does not constitute financial, tax or credit advice. Figures are based on the inputs you provide and exclude loan repayments, income tax, depreciation and capital growth. Management fee is calculated on rent collected after the vacancy allowance. Always confirm actual costs with your property manager, accountant, broker and conveyancer before relying on these figures. © Premier Buyers – premierbuyers.com.au
Gross yield vs net yield - the difference that costs people money
Gross yield is the number in the ad. It's the full annual rent divided by the purchase price, and it ignores every cost of actually holding the place. Net yield is what's left after the council rates, water, insurance, strata, management fees, maintenance, land tax and the weeks the property sits empty between tenants.
How to use this calculator
Enter the purchase price and the weekly rent to see the gross yield. Then add the annual holding costs - management fee, vacancy allowance, rates, insurance, strata and land tax - and the net yield updates as you type. The bar shows you exactly how much of the headline yield is being eaten by costs, so you're never fooled by the top-line number again.
What's a good rental yield in Australia?
There's no single right answer, and anyone who gives you one is selling something. Yield and growth usually pull against each other - the high-yield regional markets often grow slower, and the strong-growth capital-city suburbs often yield less. As a rough frame, many investor-grade properties land somewhere between 3% and 5% net, but the right number depends entirely on your strategy, your borrowing position and what the property is likely to do in capital growth. A lower net yield with strong growth can build far more wealth than a high yield that goes nowhere.
Why net yield matters more than the headline
Because net yield is the number that actually hits your account. It's what determines whether a property is holding you up or dragging you down each month, and it's the figure that tells you how much you'll need to top up from your own pocket before loan repayments and tax even enter the picture. Two properties advertised at the same gross yield can have wildly different holding costs - and you only find that out by doing the maths, which is exactly what this tool is for.
Frequently asked questions
→ Is this gross or net rental yield? Both. It shows gross yield the moment you enter a price and rent, then net yield once you add the holding costs.
→ Does it include my loan repayments? No. This measures the property's yield, not your personal cash flow after finance. Loan repayments and tax depend on your situation and belong in a separate cash-flow calculation.
→ How is net yield calculated? Annual rent, less vacancy and all holding costs, divided by the purchase price.
→ Should I include land tax? If it applies to you, yes - it's a real annual cost. It varies by state and by your total landholdings, so use your own figure or check with your accountant.
→ Is a higher yield always better? No. High yield often comes at the expense of capital growth. The best buys usually balance a solid net yield with real growth potential.