Rental Yield Calculator
Calculate the gross and net rental yield on any investment property in seconds. No signup, no credit card.
Property details
Annual expenses
Your yield
Gross rental yield
4.02%
Net rental yield
3.02%
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Gross rental yield explained
Gross rental yield is the simplest yield measure: annual rent divided by property value, expressed as a percentage.
A property worth $700,000 that rents for $550/week has a gross yield of 4.09%. It's quick and useful for comparing properties, but it ignores all the costs of ownership.
Net rental yield explained
Net rental yield subtracts annual expenses (council rates, insurance, property management, maintenance) from rental income before dividing by property value.
Net yield is a better measure of real performance. It strips out the operating costs of the property but still ignores loan repayments and tax, so it shows what the property itself earns, regardless of how it's financed.
What's a good rental yield in Australia?
- Under 3% gross: Very low. Common in inner-city Sydney and Melbourne. Investors typically buy for capital growth, not yield.
- 3–4% gross: Below-average yield. Typical for most capital city houses.
- 4–5% gross: Average. Many outer-suburb houses and apartments.
- 5–6% gross: Above average. Common in regional areas and some apartment markets.
- 6%+ gross: High yield. Usually regional Australia or specialty property types.
Yield should always be weighed against capital growth potential: a 3% yielding property in a strong growth corridor can outperform a 7% yielding property in a stagnant region.
Indicative gross yields by capital city
| City | Houses (typical) | Units (typical) |
|---|---|---|
| Sydney | 2.7 – 3.3% | 4.0 – 5.0% |
| Melbourne | 3.0 – 3.6% | 4.5 – 5.5% |
| Brisbane | 3.7 – 4.4% | 5.0 – 6.0% |
| Perth | 4.2 – 5.0% | 5.5 – 6.5% |
| Adelaide | 3.8 – 4.5% | 5.0 – 5.8% |
| Hobart | 4.0 – 4.8% | 5.2 – 6.0% |
| Darwin | 5.5 – 6.5% | 6.5 – 7.5% |
| Canberra | 3.8 – 4.5% | 5.0 – 6.0% |
Indicative ranges compiled from CoreLogic and Domain public market reports. Actual yields vary significantly by suburb, property condition, and lease terms.
Common questions
Does yield include the mortgage?
No. Both gross and net yield measure the property's earning power independent of financing. Loan repayments are factored into cashflow, not yield.
Is gross or net yield more important?
Net yield is more accurate. Gross yield is useful for quick comparisons between properties but can be misleading because it ignores expenses, which vary significantly between property types.
Does yield use current value or purchase price?
For tracking your portfolio, always use current market value; it reflects your real-time return on current capital. For comparing properties to buy, use the purchase price.
See yield across every property you own
Vestly shows gross and net yield for each property plus portfolio averages, automatically updated as rents and expenses change.
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