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CALCULATOR

Rental yield calculator

Estimates only · for investors

Your numbers

Property price

Or its current value, if you already own it.

Weekly rent

An agent's rental appraisal is a good guide.

Weeks vacant each year

weeks

Property management fee

% of rent

Strata levies

$a year

Council and water rates

$a year

Landlord insurance

$a year

Repairs and other costs

$a year

Maintenance, land tax if it applies, and the like.

Loan amount optional

Interest rate optional

% p.a.

Adds interest to show cash flow before tax.

Enter the property price and weekly rent to see your estimate.

Gross yield 0%

Net yield 0%

Rent for the year
Less vacancy
Less management fees
Less other costs
Net rental income

Rental yield is the rent a property earns each year as a percentage of its price. Gross yield uses the rent alone. Net yield takes off vacancy and running costs, so it's closer to what you actually keep. Add a loan and rate to see whether the property pays for itself before tax.

What this doesn't include

Tax. Deductions, depreciation and capital gains tax can change the picture a lot. Your accountant can work these out for you.
Capital growth. Yield is only half the story. Some properties earn less rent but grow more in value, and some the reverse.
Principal repayments. Cash flow here uses interest only. Principal and interest repayments would cost more each month, but they also pay down the loan.
Rent and rate changes. It assumes rent, costs and your rate stay the same for the year.

Questions, answered

What's the difference between gross and net yield?

Gross yield is a year's rent divided by the price. Net yield first takes off vacancy, management fees and running costs like strata, rates and insurance. Net yield is more useful for comparing properties, because costs vary a lot between, say, a unit with high strata and a house with none.

What is a good rental yield?

There's no single number. Yields vary by area and property type, and a higher yield often comes with lower expected growth. It's worth comparing similar properties in the same area and thinking about what you want from the investment.

Does rent count towards my borrowing power?

Usually, yes, but lenders often count only part of it to allow for vacancy and costs, and how much varies by lender. A broker can compare how different lenders treat rental income.

What does cash flow before tax mean?

It's net rental income minus loan interest, before any tax effects. If it's negative, the property costs you money each year before tax. That's sometimes called negative gearing, and whether it suits you is a question for your accountant.

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Talk it through

Buying your first investment property? Our guide on your first investment property loan is a good start. Or book a chat, email ugur@demir.loans or call 0495 000 228. Free, no obligation.

This calculator gives estimates only, based on the figures you enter. It assumes rent, costs and your interest rate stay the same for the year, and it shows interest-only cash flow before tax. It doesn't include tax, depreciation or capital growth. It isn't a quote, a credit offer or an indication that you'd be approved for a loan. It's general information only and doesn't take your objectives, financial situation or needs into account, and it isn't tax advice. No interest rates are quoted on this website.