A rental yield calculator lets you instantly see what return you’ll get from an investment property — before you buy. Gross yield tells you the raw income return. Net yield tells you the real one after costs. Cash flow tells you whether it’ll cost you money each week or put money in your pocket.
Use the calculator below for any Australian property, then read the guide underneath to understand what the numbers actually mean.
Rental Yield Calculator Australia
🏠 Property Yield & Cash Flow Calculator
How to Calculate Rental Yield in Australia
Gross Rental Yield
Gross yield is the simplest measure — annual rent divided by the purchase price:
Gross Yield = (Annual Rent ÷ Purchase Price) × 100
Example: $550/week × 52 = $28,600 annual rent. $28,600 ÷ $600,000 × 100 = 4.77% gross yield.
Gross yield is useful for quick comparisons between properties but doesn’t tell you the full picture — it ignores all costs.
Net Rental Yield
Net yield accounts for the costs of ownership — management fees, vacancy, rates, insurance, and maintenance (but typically not loan interest, which is a financing cost rather than a property cost):
Net Yield = ((Annual Rent − Annual Costs) ÷ Purchase Price) × 100
A property with 4.77% gross yield might deliver 3.2–3.8% net yield after costs — the gap matters when comparing properties.
Cash Flow (After Interest)
Cash flow tells you the real weekly impact on your bank account. It’s net income minus your loan interest (if you’re borrowing). This is what most investors care about most — whether it costs them money each week or earns them money.
What Is a Good Rental Yield in Australia?
As a general benchmark for Australian investment properties in 2026:
- Below 3% gross: Very low — you’re buying almost entirely for capital growth
- 3–4% gross: Typical for inner-ring Sydney and Melbourne houses
- 4–5% gross: Solid — common in Brisbane, Adelaide, Perth, and outer-ring capital suburbs
- 5%+ gross: Strong yield — often found in regional areas or properties with secondary dwellings
Gross yield above 4% is generally considered the minimum threshold for a manageable investment in the current interest rate environment. At 6.5% on an 80% LVR loan, you need at least 4% gross yield to keep the cash flow gap reasonable.
Gross Yield vs Net Yield: What’s the Typical Gap?
The gap between gross and net yield depends on your cost structure:
- Property management fees (8%): reduces yield by ~0.38% on a 4.77% gross yield property
- Council rates ($2,000/year): reduces yield by ~0.33%
- Landlord insurance ($1,500/year): reduces yield by ~0.25%
- Maintenance allowance (1% of value): reduces yield by ~1%
- Vacancy (2 weeks): reduces yield by ~0.18%
A typical rule of thumb: subtract 1.0–1.5 percentage points from gross yield to estimate net yield. A 4.5% gross yield property typically delivers 3.0–3.5% net yield.
Is It Better to Have High Yield or Capital Growth?
This is the fundamental trade-off in Australian property investment. High-yield properties (often regional or lower-demand areas) generate positive cash flow but may grow slowly in value. Low-yield properties in prime locations grow faster in value but cost money to hold.
Most experienced investors aim for the best combination they can find — a middle-ring capital city suburb with 4%+ gross yield and good capital growth fundamentals. See our guide on choosing the right suburb for investment for the research framework.
Using the Calculator to Compare Properties
Run different properties through the calculator to compare them side by side. A $500,000 property at $480/week beats a $650,000 property at $550/week on yield — even though the absolute rent is higher on the more expensive property. Numbers that look similar in a listing can look very different when yield is calculated properly.
Also use the cash flow section to model your actual loan — at $480,000 loan at 6.5%, you’re paying $31,200/year in interest. Whether the property covers that cost or not determines whether you need to fund a shortfall from your salary each month. For more context on how this plays into your full tax position, see our investment property tax deductions guide.
Frequently Asked Questions
What is a good rental yield in Australia in 2026?
A gross yield of 4%+ is considered solid in the current interest rate environment. Inner Sydney and Melbourne houses typically yield 3–3.5% gross; Brisbane, Adelaide and Perth offer 4–5% gross in many suburbs. Regional areas can reach 5–7% gross but with higher vacancy risk and less capital growth.
How do I calculate the rental yield on a property?
Gross yield = (weekly rent × 52 ÷ purchase price) × 100. Example: $500/week on a $600,000 property = ($500 × 52 ÷ $600,000) × 100 = 4.33% gross yield. Net yield subtracts annual costs before dividing by the purchase price.
What’s the difference between gross and net rental yield?
Gross yield uses total annual rent with no deductions. Net yield subtracts property costs (management fees, rates, insurance, maintenance, vacancy allowance) before dividing by the purchase price. Net yield is a better measure of real return but is harder to compare between properties since costs vary.
Does rental yield include mortgage repayments?
No — rental yield calculations don’t include loan repayments. Yield is a property metric independent of financing. Cash flow after interest (shown in the calculator above) tells you the bank account impact of the investment including your loan costs.
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General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
