Free tool

Rental Yield Calculator

Work out the gross and net rental yield on an investment property — after the weeks without a tenant, the agent's fee and the running costs that come out of the rent.

The property

Purchase price

$

Weekly rent

$

Include purchase costs

Running it

Weeks vacant a year

weeks

Management fee

% of rent

Other running costs (yearly)

$

Net yield

3.52%

After vacancy, the agent and running costs

Gross yield

4.8%

A full year's rent over the price

Left over each week

$440.38

$22,900 a year, before any loan or tax

Rent collected

$30,000

50 weeks let a year

Where a year’s rent goes

Fifty-two weeks of rent, split into what vacancy, the agent and the running costs take and what is left.

Left over$22,900
Running costs$5,000
Agent$2,100
Vacancy$1,200

How the number is built

Gross yield
	$600 a week × 52	$31,200
÷	Purchase price	$650,000
=	Gross yield	4.8%

Net yield
	Rent for 50 weeks let	$30,000
−	Management at 7%	$2,100
−	Other running costs	$5,000
=	Net rent	$22,900
÷	Purchase price	$650,000
=	Net yield	3.52%

General information only. Yield is a snapshot of one year’s income against the price; it says nothing about capital growth, loan costs or tax, and the rent and costs you enter are estimates. It is not financial advice or a recommendation to buy any property. Our Credit Guide sets out who we are and how we are licensed.

Gross yield and net yield

Gross yield is the simple version: a year’s rent as a share of the price. A property renting at $600 a week brings in $31,200 a year, and at $650,000 that is a gross yield of 4.8%. It is the number on most listings because it is easy to work out and flatters everything equally.

Net yield is the one that matters. Allow two weeks a year without a tenant, a 7% management fee and $5,000 of rates, insurance and repairs, and $22,900 is left — $440.38 a week, and a net yield of 3.52%. That is the property’s income before any loan and before tax.

What goes into the running costs

Management. A percentage of the rent collected, plus letting, advertising and inspection fees with many agents.
Council rates and water. Water usage can often be passed to the tenant; the fixed charges usually cannot.
Landlord insurance and strata. Strata levies on an apartment can be the largest single cost.
Repairs and maintenance. Older properties cost more to keep rentable. A year with a new hot water system is not an average year, so smooth it out.
Land tax. A state tax on investment land above a threshold, which varies widely between states and can change the numbers entirely.

Yield on the price, or on what you paid

Stamp duty, legal fees and inspections are part of what an investment costs, even though they buy nothing you can rent out. Include 5% of purchase costs on the $650,000 example and the net yield on the total outlay is 3.36% rather than 3.52%. It is the truer measure of your return, and the one to use when comparing property with other places your money could go.

Using yield to compare properties

A $500,000 apartment renting at $550 a week has a gross yield of 5.72%, well ahead of the house above — and with $6,000 of running costs, including strata, a net yield of 3.91%. On yield alone the apartment wins.

Yield is only half the return, though. Treasury’s analysis for the 2026 Budget found houses grew by an average of about 6% a year over the past 20 years for typical holding periods, and units by between 4% and 5%. Higher yield often comes with lower growth. Run both through our property growth calculator and look at the two together.

From yield to what it costs you

A net yield below your loan’s interest rate means the property costs you money each year, before tax, until the rent catches up. How much depends on the deposit, the loan and your tax position — the investment property cash flow calculator works it out week by week, and the negative gearing calculator shows how the 2026 tax changes affect it.

Frequently asked questions

How do I calculate rental yield?

Gross yield is a year's rent divided by the price: $600 a week is $31,200 a year, and on a $650,000 property that is 4.8%. Net yield takes off the weeks without a tenant, the agent's fee and the running costs first. With two weeks vacant, a 7% management fee and $5,000 of other costs, $22,900 is left, and the net yield is 3.52%.

What is the difference between gross and net rental yield?

Gross yield is the rent before anything comes out of it, and it is the figure most listings quote. Net yield is what is left after vacancy and running costs — management, council rates, insurance, strata, repairs and land tax. Two properties with the same gross yield can have very different net yields, so net is the one to compare.

What is a good rental yield?

There is no single number. Yield depends on the location, the type of property and the market, and it trades off against growth: properties with higher yields have often grown more slowly. A net yield well below your loan's interest rate means the property will cost you money each year until the rent rises, which can be a sound strategy for growth — as long as you can afford it and have planned for it.

Does rental yield include the mortgage?

No. Yield measures the property's income against its price, before any loan and before tax, so it can be compared across properties however they are financed. To see what a property would cost you each week with your loan and your tax position, use the investment property cash flow calculator.

Should stamp duty be included in the yield?

For comparing listings, yield on the price is the convention. For your own return, include the purchase costs, because they are money you have put in: 5% of costs on a $650,000 purchase takes the net yield in the example from 3.52% to 3.36%. Tick “Include purchase costs” above to see both.

Want us to run these numbers properly?

A calculator works with the handful of figures it asks for. A strategy session works with your income, your debts, your tax position and what you are actually trying to build. The first one is free.

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