Calculator
Gross & Net Rental Yield
Both yield views — gross (headline) and net (after holding costs) — plus pre-tax cashflow after debt servicing.
Gross yield
4.48%
$32,240 / price
Net yield (on price)
3.27%
NOI / purchase price
Net yield on total cost
3.10%
Includes acquisition costs
Net operating income
$23,530
Rent collected less holding costs
Pre-tax cashflow after debt
-$20,005
Debt service $43,535 p.a.
General information only. Calculations are indicative, based on simplified rules current at FY2024–25, and exclude items such as foreign buyer surcharges, off-the-plan concessions, principal-place-of-residence rules and lender policy variation. Always verify with your accountant, broker and the relevant State Revenue Office calculator before transacting.
About this calculator
Rental Yield Calculator (Australia)
Yield is the most quoted and most abused number in Australian property. A 5% 'gross yield' headline hides whether the underlying property nets 4% or 1.5% after rates, strata, agent fees, repairs, vacancy and insurance. This calculator separates the gross figure (annual rent ÷ purchase price) from the net figure (rent minus all real holding costs ÷ purchase price), so you can compare a Brisbane house at 4.5% gross to a Sydney apartment at 3.8% gross and see which actually performs in cashflow terms.
When to use it
- Pre-offer due diligence on any investment property
- Comparing two properties with different strata and rates loads
- Setting a target weekly rent for a renovation refresh
- Forecasting after-tax cashflow at different marginal rates
How to use it
- 1
Enter purchase price
Use the actual contract price excluding stamp duty and acquisition costs. Yield is conventionally measured against price, not 'all-in' cost.
- 2
Enter weekly rent
Use a realistic figure — the rental appraisal from the local agent, not the optimistic top of the range.
- 3
Add holding costs
Council rates, water, body corporate / strata, landlord insurance, property management (~7–8% of rent), repairs (~1% of value), vacancy allowance (~2 weeks/year).
- 4
Read gross and net yields
Gross is annual rent ÷ price. Net is (annual rent − holding costs) ÷ price. The gap is where 'cashflow positive' headlines unravel.
Methodology & assumptions
Gross yield = (weekly rent × 52) ÷ purchase price. This is the comparison metric used in REA / Domain listings and most agent marketing.
Net yield strips out council rates, water, strata, landlord insurance, property management fees, an allowance for repairs (typically 1% of property value per year) and a 2-week vacancy allowance.
Interest cost is deliberately excluded from the net yield figure — yield is a property-level metric, while interest is a finance-structure metric. Combining them gives cashflow, not yield.
For tax-aware comparisons, layer the depreciation figure from our Tax Depreciation Calculator on top of the net yield to estimate after-tax return.
Common pitfalls we see
- Quoting gross yield without naming it. Brokers and agents often blend gross and net depending on which is higher.
- Forgetting strata. Sydney and Melbourne apartment strata of $4,000–8,000/year can wipe 1% off yield instantly.
- Underestimating repairs. New builds defer maintenance for 5–7 years; older properties may need 1.5–2% of value annually.
- Ignoring vacancy. Even 'tight' markets see 2–3% vacancy; budget for it explicitly.
Frequently asked questions
What is a good rental yield in Australia?
For houses, gross yields above 4.5% are considered strong in metro markets; 5%+ is typical of regional and outer-suburban areas. Apartments often look higher gross but net out 1–2% lower due to strata.
What's the difference between gross and net yield?
Gross yield uses headline annual rent. Net yield deducts holding costs (rates, strata, insurance, management, repairs, vacancy). Net is what your bank account actually feels.
Does yield include capital growth?
No — yield is purely an income metric. Total return = yield + capital growth. Most long-term Australian property returns have been ~70% growth, ~30% income.
Why is apartment yield often higher than house yield?
Apartments carry strata, which households don't. Gross looks higher because land share is lower, but net yields are usually similar after strata is deducted.