Disclaimer: This calculator provides estimates only and should not be considered financial or tax advice. Rental yields shown are indicative and do not account for vacancy periods, capital growth, income tax on rental income, or depreciation benefits. Always consult a qualified accountant or financial adviser before making investment decisions. Evercend Pty Limited does not hold an Australian Financial Services Licence and does not provide financial product advice.
Rental yield calculator inputs and results
Property details
Annual expenses
Typical range is 7-12% depending on the state and agent.
Enter 0 if freestanding house.
Enter property details to begin
Enter the property value and weekly rent on the left to calculate gross and net rental yield instantly.
What is rental yield?
Rental yield measures the income a property earns from rent as a percentage of its value. It is one of the main numbers investors use to compare properties and to judge whether the rent covers the cost of owning the property. This calculator works out both the gross yield and the net yield.
Gross yield uses the rent alone. Net yield takes the ownership costs into account, so it gives a more realistic picture of the income the property produces. Yield measures income only. It does not include any capital growth if the property rises in value over time. This is a model and general information, not financial or tax advice.
How to use this calculator
Enter the property value
Use the purchase price, or the current market value if you already own the property.
Add the rent
Enter the weekly, monthly or annual rent the property earns.
Add the annual expenses
Include costs such as council rates, insurance, management fees, maintenance and any strata fees.
Read the result
The calculator shows the gross yield from rent alone and the net yield after expenses.
How this calculator works
Gross yield divides the annual rent by the property value and shows it as a percentage. Net yield first subtracts your annual ownership costs from the rent, then divides that net income by the property value. Because net yield removes the costs of holding the property, it is usually lower than gross yield, and the gap between the two shows how much the running costs weigh on the return.
Assumptions used
Assumptions used: gross yield is annual rent divided by property value, times 100. Net yield is annual rent less annual expenses, divided by property value, times 100. The calculator uses the figures you enter, so the property value can be the purchase price or a current valuation. Yield is a pre-tax measure and does not include income tax or capital gains tax. Rental income is assessable income and many ownership costs can be offset against it, but that tax effect is handled separately. The estimate does not include capital growth and is general information, not advice.
Worked example
A property is worth $600,000 and rents for $500 a week, which is $26,000 a year. The gross yield is $26,000 divided by $600,000, which is about 4.3%.
If the annual ownership costs are $7,000, the net income is $19,000. The net yield is $19,000 divided by $600,000, which is about 3.2%. The costs reduce the yield by about 1.2 percentage points.
Gross yield is useful for a quick comparison, while net yield reflects what the property earns after running costs.
What changes your rental yield
Several things move your rental yield up or down. The main ones are:
The rent
Higher rent lifts the yield. Rent is set by the market, the location and the property type.
The property value
A higher purchase price lowers the yield for the same rent, which is why cheaper areas can show higher yields.
Ownership costs
Rates, insurance, management fees, maintenance and strata fees reduce net yield below gross yield.
Vacancy
Weeks without a tenant reduce the rent actually received and lower the real yield.
Capital growth
Yield measures income only. A full picture of return also considers capital growth, which yield does not include.
Tax
Yield is a pre-tax figure. Rental income is taxable and many costs are deductible, which changes the after-tax return.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| Gross rental yield | Annual rent divided by property value, times 100 | ASIC MoneySmart, Buying an investment property |
| Net rental yield | Annual rent less annual expenses, divided by property value, times 100 | ASIC MoneySmart, Buying an investment property |
| Rental income | Assessable income, declared in the year the tenant pays rent | ATO, Rental income you must declare |
| Rental expenses | Most property expenses, including loan interest, can be offset against rental income | ASIC MoneySmart, Buying an investment property |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
There is no single benchmark. Yields vary by location, property type and the market, and a higher yield often comes with lower expected capital growth. This calculator shows the yield for the figures you enter so you can compare properties on the same basis.
Related calculators and guides
Sources
- •ASIC MoneySmart, Buying an investment property
- •ASIC MoneySmart, Property investment
- •ATO, Rental income you must declare
Content reviewed and figures checked against the sources above on 10 August 2026.