Free Tool · Investment Property
Rental Yield Calculator Australia
Calculate gross and net rental yield for any Australian investment property — and find out if the numbers stack up.
Calculate gross and net rental yield for any Australian investment property — and find out if the numbers stack up.
Last reviewed 12 July 2026 · rates and thresholds verified against official FY2026-27 sources.
Rental yield is the annual rental income from an investment property expressed as a percentage of what the property is worth. It is the single most-quoted measure of how hard your money is working as income, and it lets you compare wildly different properties on a level footing. A $450,000 unit and a $1.2 million house tell you nothing about return until you convert each to a yield — at which point you can see, instantly, which one pays you back faster in rent.
Yield matters in Australia for one big reason: it is the income half of a two-part return. Property investors earn from rent (yield) and from the property rising in value over time (capital growth). The two tend to pull against each other, which is why understanding yield is the starting point for almost every investment decision — from whether a deal is positively or negatively geared, to how much of your own cash you'll need to feed the property each month.
There are two yields, and confusing them is the most common mistake new investors make.
The gap between the two is rarely small. Once expenses are in, net yield is typically 1–2 percentage points below gross. A property advertised at a 5% gross yield might land closer to 3.3% net — which can be the difference between a property that pays for itself and one that costs you money every week.
This calculator uses the standard Australian formulas. The only quirk worth knowing is that weekly rent is annualised by multiplying by 52 (the convention here; some lenders use 52.14 to account for the extra days in a year).
Note that the management fee is charged on rent actually collected, so this tool applies it to the effective rent rather than the headline figure. The result fields show your gross yield, net yield, effective annual rent and total annual expenses so you can see exactly where the gross-to-net gap comes from.
Assumptions: a property worth $750,000 renting for $550 per week. We allow 2 weeks vacancy a year and budget the following annual costs: council rates $2,200, landlord insurance $1,500, maintenance $2,500, and property management at 8% of rent collected.
The headline 3.81% gross collapses to 2.55% net once vacancy and running costs are accounted for — and that is before any loan interest. This is typical of a higher-priced capital-city property and is exactly why so many of them rely on capital growth rather than income.
| Gross yield range | What it usually signals |
|---|---|
| Below 3% | Low — premium capital-city property, almost certainly negative cashflow |
| 3% – 4% | Typical for established houses in major cities |
| 4% – 5% | Solid — common for units and outer suburbs, often near cashflow-neutral |
| 5% – 7% | Strong income — frequently regional centres or smaller markets |
| Above 7% | High yield — check why; may carry higher vacancy, lower growth or unusual risk |
There is no single "good" number — it depends on your strategy. A very high yield is not automatically better, because it often comes attached to weaker capital growth, thinner tenant demand or higher vacancy. As a rule of thumb, houses in the big eastern-capital cities sit at the lower end and units, outer suburbs and regional markets at the higher end. Always benchmark against a current rental appraisal for the specific property and suburb, not a city-wide average.
Australian property returns come from two sources, and they tend to be inversely related. High-growth blue-chip suburbs in Sydney and Melbourne have historically delivered strong long-term price appreciation but low yields, because prices have run ahead of rents. Higher-yielding markets — many regional towns, mining-linked areas, and some unit markets — pay better income but have often shown more modest or volatile capital growth.
Neither is universally "right". A growth-focused investor accepts negative cashflow today, betting that the property's rising value builds wealth over a decade or more. A cashflow-focused investor prioritises positive income, which is easier to hold through rate rises and is useful for retirees or those wanting the portfolio to fund itself. Many investors aim for a blend: a respectable net yield in an area with genuine population and jobs growth. The Reserve Bank of Australia (RBA) publishes housing and interest-rate data that helps frame how the cost of holding property shifts over a cycle.
Two inputs quietly decide whether a deal works. Vacancy is the time between tenants when no rent comes in. Even one to three weeks a year meaningfully dents your effective rent, and properties in oversupplied unit markets or seasonal towns can sit empty far longer. Expenses are easy to underestimate because listings never mention them. As a starting point for budgeting:
Once you add a mortgage, net yield helps you see which side of the line your property falls on. A property is negatively geared when rent does not cover interest and holding costs, producing a loss. Under current Australian Taxation Office (ATO) rules, that loss can generally be offset against your other taxable income, reducing the tax you pay — though the property still costs you cash out of pocket each year. A property is positively geared (positive cashflow) when rent exceeds all costs, generating surplus income that is itself taxable. Low-yield capital-city houses are commonly negatively geared; higher-yielding regional and unit properties are more often positive. This tool calculates yield before loan interest and tax, so it shows the income side only — pair it with your actual interest cost to work out gearing.
It gives you a clean, like-for-like read on gross and net rental yield, the effective rent after vacancy, and your total operating expenses. That is the core of any property comparison. It deliberately does not include:
Treat the output as a screening tool to shortlist properties, then run the full numbers (loan, tax, growth assumptions) before committing. This is general information, not personal financial advice. For impartial guidance, the Australian Government's Moneysmart service (moneysmart.gov.au, run by ASIC) has free calculators and investing guides.
Use gross yield for a fast comparison between listings, because it is easy to calculate from the advertised price and rent. Use net yield to decide whether a property actually works, because it reflects the costs you'll really pay. Net yield is what tells you if the property is heading toward positive or negative cashflow.
For a well-located property in a tight rental market, one to two weeks a year is reasonable. In areas with high supply, seasonal demand or older stock, allow three to four weeks or more. It's better to be conservative — overestimating vacancy protects you from a nasty surprise in your cashflow.
No. A high yield can be a reward for taking on more risk — weaker capital growth, higher vacancy, thinner buyer demand, or location-specific issues. The strongest strategies weigh yield against the likely capital growth and the reliability of tenant demand, rather than chasing the biggest percentage.
For assessing a deal you're considering, use the likely purchase price. For tracking the performance of a property you already own, use its current market value — as the property appreciates, the same rent represents a lower yield on today's value, which is one reason long-held properties often show modest yields on paper.