Rental Yield Calculator Australia

What Is Rental Yield?

Rental yield is the annual return on a property investment expressed as a percentage of the property’s value. It is one of the most important metrics for evaluating whether an investment property is generating adequate income relative to its cost. In Australia, gross rental yields typically range from 3% to 7% depending on location, property type, and market conditions.

There are two types of rental yield: gross yield and net yield. Gross yield is the simpler calculation — annual rent divided by the property price. Net yield goes further by subtracting expenses such as council rates, insurance, property management fees, maintenance, and strata levies from the annual rent before dividing by the property price.

How to Use the Rental Yield Calculator

Enter the property’s purchase price (or current market value) and the weekly rental income. Our calculator converts the weekly rent to annual income and divides it by the property value to give you the gross rental yield as a percentage.

For a more accurate picture, you can also enter your estimated annual expenses to calculate the net rental yield. Net yield gives a truer reflection of your actual return because it accounts for the ongoing costs of owning and managing the property.

What Is a Good Rental Yield?

A gross yield of 5% or above is generally considered solid in the Australian market, though this varies by city and region. Capital cities like Sydney and Melbourne often have lower yields (3–4%) because property prices are high relative to rents. Regional areas and smaller cities may offer higher yields (5–7%) but can come with higher vacancy risk and slower capital growth.

Smart investors look at rental yield alongside capital growth potential, vacancy rates, and local economic factors. A property with a modest yield but strong long-term growth may outperform a high-yield property in a stagnant market. Use our calculator as a starting point, and always consider the full picture before making investment decisions.