Home Rental Yield Calculator for Investment Property
Rental Yield Calculator for Investment Property
This free rental yield calculator works out the gross and net yield on any Australian investment property. Gross yield is the yearly rent divided by the purchase price. Net yield takes off running costs such as management, rates, insurance and vacancy first. Enter the price, weekly rent and yearly costs to compare properties on the same basis.
Free calculator
Calculate your rental yield
Enter the purchase price, the weekly rent and your yearly costs, and the calculator shows the gross yield, the net yield and the net income for the year. Use the price you paid or the current value, and count every cost, so the result shows what the property really earns.
How it works
How to calculate rental yield: gross and net
To calculate rental yield, multiply the weekly rent by 52 and divide by the purchase price for the gross yield. For the net yield, take the yearly costs off the rent first. A $600 weekly rent on a $650,000 property gives about 4.8% gross and about 3.5% net after $8,500 of costs.
Gross yield = weekly rent x 52, divided by the purchase price, x 100. A $600 a week rent on a $650,000 property is $31,200 a year, so the gross yield is about 4.8%.
Net yield = (yearly rent minus yearly costs), divided by the purchase price, x 100. If the same property costs $8,500 a year to hold (management, rates, insurance, repairs and a few weeks without a tenant), net income is $22,700 and the net yield is about 3.5%. Net yield is the better number for comparing properties.
Yield is worked out before the loan and before tax. It does not include mortgage repayments, so use the mortgage calculator next to see the weekly cash flow.
What to include
Costs that belong in net yield
Net yield should include every cost of holding the property: the management fee, council and water rates, strata fees, landlord insurance, land tax where it applies, repairs, and an allowance for weeks without a tenant. Leave out loan repayments and income tax, because yield is worked out before both.
- Property management
The letting and management fee, usually a percentage of the rent.
- Rates, water and strata
Council and water rates, plus strata or body corporate fees for units and townhouses.
- Insurance and land tax
Landlord insurance and, where it applies, land tax. Land tax differs by state.
- Repairs and vacancy
An allowance for maintenance and for the weeks the property sits empty between tenants.
Before you rely on the result
Get a realistic yield
A realistic yield starts with the rent a tenant will actually pay, not the asking rent. Check recent leases nearby, allow for vacancy, count every cost, and look past yield to growth, land and the loan. A high yield in a weak area can be worse than a lower yield in a strong one.
- 1Check the rent
Compare it with recently leased properties nearby, not just asking rents.
- 2Allow for vacancy
Allow for a few weeks without a tenant each year.
- 3Count every cost
Include management, rates, strata, insurance, land tax and repairs.
- 4Look past yield
Growth, land size and the loan all matter too. A high yield in a weak area can be worse than a lower yield in a strong one.
Results are estimates from the numbers you enter. They are general information, not financial advice.
Benchmarks
What is a good rental yield in Australia?
Cotality puts the national gross rental yield at 3.85% for September 2026, with houses at 3.6% and units at 4.7%. Capital cities averaged 3.7% and regional areas 4.3%. Yield varies by city and property type, so compare a property with its own market, not only the national figure.
| Area | Gross yield |
|---|---|
| Australia, all dwellings | 3.85% |
| Australia, houses | 3.6% |
| Australia, units | 4.7% |
| Combined capital cities | 3.7% |
| Combined regional areas | 4.3% |
| Sydney | 3.4% |
| Melbourne | 4.1% |
| Brisbane | 3.5% |
| Adelaide | 3.6% |
| Perth | 4.0% |
| Hobart | 4.4% |
| Canberra | 4.4% |
| Darwin | 6.5% |
Gross yield is the yearly rent divided by the property value, before costs. City rows are all dwellings. National gross yield was 3.85% in September 2026, up from 3.61% a year earlier (Cotality and its Home Value Index, checked 28 October 2026).
Compare
Long-term rent or short-term rental?
A short-term rental can earn more than a long-term lease, but it adds cleaning, linen, platform fees and more management. To compare the two on the same property, run the long-term numbers here and the short-term numbers in the short-term rental yield calculator, then set the results side by side.
The same property can earn more as a short-term rental, but it carries cleaning, linen, platform fees and more management. Run the numbers both ways with the short-term rental yield calculator, then see our full set of property calculators.
If you want help choosing a property, our investment property buyers agent team can check the numbers before you buy.
To estimate what a property could earn as a short-term rental, try the Airbnb revenue estimator, then see the weekly profit after costs and the loan in the rental property cash flow calculator. If you want a property bought for short-term rental income, see our Airbnb buyers agent service.
Rental yield calculator: common questions
These are the questions investors ask most about rental yield: how to calculate it, what counts as a good figure, which costs to include, how vacancy and the mortgage fit in, and how tax rules relate to it. Each answer is short so you can check it quickly and move on.
How do I calculate rental yield?
Gross yield is weekly rent x 52, divided by the purchase price, x 100. Net yield takes the yearly running costs out of the rent first. This calculator does both from the price, rent and costs you enter.
What is the difference between gross and net rental yield?
Gross yield is the yearly rent divided by the purchase price. Net yield takes the yearly running costs out of the rent first, so it shows what the property really earns. Net yield is the better number for comparing properties.
What is a good rental yield in Australia?
It depends on the city, the property type and your goals. Cotality reported a national gross yield of 3.85% for September 2026, with houses at 3.6%, units at 4.7%, capital cities at 3.7% and regional areas at 4.3%. Yield is only one part of the decision, so compare it with growth, land size, the loan cost and your tax position.
Which costs should I include?
Property management, council and water rates, strata, insurance, land tax and repairs, plus an allowance for vacancy.
Does rental yield include the mortgage?
No. Yield is worked out on the purchase price before the loan and before tax. To see cash flow after the loan, add the repayments using the mortgage calculator.
Is yield or capital growth more important?
Both matter. Yield pays the bills while you hold the property and growth builds the value. Many investors look for a balance rather than the highest yield on its own.
Should I use the purchase price or the current value?
Use the purchase price (or the current value if you already own the property) so the yield matches what you have actually put in.
Should I try a short-term rental instead?
A short-term rental can earn more than a long-term lease but carries more costs. Use the short-term rental yield calculator to compare the two on the same property.
Show 5 more questionsShow fewer questions
Is a 5% rental yield good?
A 5% gross yield is above the national average of 3.85% that Cotality reported for September 2026, and above the 4.7% for units and 3.6% for houses. Among the capital cities Cotality listed, only Darwin (6.5%) was higher. A good result also depends on growth, costs and the loan, so check the net yield too.
How much vacancy should I allow for?
SQM Research put the national vacancy rate at 1.4% in September 2026, which is a tight rental market, but vacancy varies by city and suburb. Many investors allow a few weeks a year, such as two to four, as a starting point, and more where the local vacancy rate is higher.
What is the average rental yield in Australia?
Cotality reported a national gross rental yield of 3.85% for September 2026, up from 3.61% a year earlier. Houses averaged 3.6% and units 4.7%. Capital cities averaged 3.7% and regional areas 4.3%. These are gross yields, so net yields are lower once costs come out.
How do I work out weekly cash flow after the mortgage?
Take the weekly rent, subtract the weekly share of your running costs, then subtract the loan repayments. Use the mortgage calculator for the repayments. For a short-term rental, the Airbnb cash flow calculator shows the weekly profit after costs and the loan, because yield on its own ignores the loan.
Does negative gearing change the rental yield?
No. Yield is worked out before tax and before the loan, so negative gearing does not change it. Negative gearing is a tax result that applies when costs and loan interest are higher than the rent. The ATO says that from 1 July 2027 negative gearing for residential property is limited to new builds, with properties held at 7:30pm AEST on 12 May 2026 exempt. Ask your accountant how it applies to you.
Facts checked 28 October 2026.
- The national gross rental yield was 3.85% in September 2026, with houses at 3.6% and units at 4.7% (Cotality and its Home Value Index, checked 28 October 2026).
- The national residential vacancy rate was 1.4% in September 2026, up from 1.3% in August (SQM Research, checked 28 October 2026).
- Advertised rents were 7.6% higher than a year earlier in the 30 days to 12 October 2026, with house rents up 8.4% and unit rents up 6.3% (SQM Research, checked 28 October 2026).
- From 1 July 2027 negative gearing for residential property is limited to new builds, and properties held at 7:30pm AEST on 12 May 2026 are exempt (Australian Taxation Office, checked 28 October 2026).
Want the numbers checked?
Talk to our buyers agents about finding an investment property that suits your goals, with the rent, costs and yield checked before you buy. Book a free 15-minute call, phone 0434 211 016, or reach us Monday to Friday 8am to 5:30pm and Saturday 8am to 12pm.