Rental Yield Calculator Australia
Work out the gross and net rental yield on an Australian investment property. Enter the price, weekly rent, and operating expenses to see the real return — plus a "true yield" figure that includes stamp duty and other acquisition costs. Every input stays in your browser.
Property Details
Allow 2–4 weeks for vacancy (enter 48–50)
Typical 7–8% plus letting fee
Annual Expenses
Typical $1,500–$2,500 per year
Typical $800–$1,200
$0 for houses; $2,000–$6,000 for units
Typical $900–$1,500
Budget ~1% of property value per year
Varies by state and land value — $0 if below threshold
Stamp duty + conveyancing + inspections. Used for the "true yield" figure.
Income & Expenses (Annual)
How Rental Yield Is Calculated
Gross Rental Yield = (Annual Rent ÷ Property Price) × 100
Net Rental Yield = ((Annual Rent − Operating Expenses) ÷ Property Price) × 100
True Yield = ((Annual Rent − Operating Expenses) ÷ (Property Price + Acquisition Costs)) × 100
Gross yield is a fast, rough benchmark. Net yield is what you actually earn after running costs. True yield compares the property against investments that don't carry a 4–6% acquisition cost up front.
Worked Example: $800k House, $600/week Rent
A Sydney house bought for $800,000 rents at $600/week. Stamp duty, conveyancing and inspections cost $45,000. Council rates $2,000, water $1,000, insurance $1,200, maintenance $2,000, no strata, 7.5% management. Allow 2 weeks vacancy.
- Annual rent: $600 × 50 = $30,000
- Gross yield: $30,000 / $800,000 = 3.75%
- Total expenses (incl. $2,250 management): $8,450
- Net operating income: $30,000 − $8,450 = $21,550
- Net yield: $21,550 / $800,000 = 2.69%
- True yield: $21,550 / $845,000 = 2.55%
At a 2.69% net yield, this property needs capital growth to justify the investment. A leveraged investor would also need to subtract loan interest, which can push the position into a tax loss — see our negative gearing calculator.
Yield vs Other Property Metrics
- Yield — annual rent return on property value. This calculator.
- Cash-on-cash return — cashflow after mortgage divided by deposit + purchase costs.
- Total ROI — yield plus capital growth, adjusted for leverage.
- After-tax cashflow — net income after tax deductions and your marginal rate. See Investment Property Calculator.
Frequently asked questions
What is a good rental yield in Australia?
What is the difference between gross and net rental yield?
Should I include stamp duty and acquisition costs?
How do I allow for vacancy?
Does this include tax deductions or loan interest?
What expenses should I include?
Is rental yield the same as ROI?
Tax Accuracy & Sources
This calculator uses industry-standard rental yield formulas. Expense ranges reflect typical Australian properties but vary by location, age, and condition. Yield is a pre-tax, pre-mortgage measure and does not include depreciation, loan interest, or capital gains tax.