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Rental yield calculator
Work out the gross and net rental yield on an investment property, what the costs really take out of the rent, and whether it pays for itself once your loan is in the picture.
| Cost | Per year | Per week | Share of rent |
|---|---|---|---|
| Vacancy (2 wks) | $1,100 | $21 | 3.8% |
| Property management | $1,925 | $37 | 7% |
| Council rates | $1,600 | $31 | 5.8% |
| Water | $750 | $14 | 2.7% |
| Insurance | $500 | $10 | 1.8% |
| Strata | $3,200 | $62 | 11.6% |
| Repairs | $1,200 | $23 | 4.4% |
| Total | $10,275 | $198 | 35.9% |
In short: A $620,000 unit renting for $550 a week has a gross yield of 4.6%. Allow 2 vacant weeks, 7% management, council rates, water, insurance, $3,200 of strata and some repairs, and about $9,175 of costs leaves $18,325 a year, a net yield of about 3%. That's before loan interest.
How it works
Gross vs net yield
Gross yield is the headline figure agents quote: a year's rent divided by the price. Net yield is the one that matters. Take off vacancy, management, rates, insurance, strata, land tax and repairs, and a 4.6% gross yield can easily be 3% net.
What's a good rental yield?
In Melbourne, houses have tended to return around 3% to 3.5% gross and units around 4% to 5%, while regional areas can be higher. A higher yield usually means slower growth, so compare yield together with growth, your cash flow and your tax position, not on its own.
FAQ
Common questions
How do you calculate rental yield?
Gross rental yield = weekly rent × 52 ÷ property price × 100. Net rental yield = (yearly rent received − yearly costs) ÷ property price × 100. Use the price you'd pay, or today's value if you already own it.
Does rental yield include mortgage interest?
No. Yield measures the property, not how it's financed. Add your loan in the calculator to see whether the rent covers the interest and how much you'd top up each week.
What costs should I include in net yield?
Property management fees and letting fees, council rates, water service charges, landlord insurance, owners corporation fees, land tax, repairs and maintenance, and an allowance for vacant weeks.
Is a high rental yield better than capital growth?
It depends on what you need. Higher yield helps cash flow and makes the next loan easier to get. Growth builds equity faster. Most investors need some of both, and the 2027 tax changes make cash flow more important for established properties.
Home Loans & Property
Read before you decide
General information only. These calculators give estimates based on the figures you enter and published rates, and don't consider your objectives, financial situation or needs. They're not a quote, credit assessment or tax advice. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd, Australian Credit Licence 390261.
