Work out the gross and net rental yield on an Australian investment property from the price, weekly rent, vacant weeks and running costs. A $650,000 house rented at $600 a week has a gross yield of 4.80%. After 2 vacant weeks, a 7% management fee, $2,600 of rates, $1,800 of insurance and $1,500 of repairs, the net yield is 3.38%, or $22,000 a year before loan interest and tax.
Rental Yield Calculator
Gross and net yield on an investment property · Updated 13 October 2026
- Net rental yield
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- Rent for a full year
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- Rent after vacant weeks
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- Management fee
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- Total running costs
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- Net income before loan and tax
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- Net income per week
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- Net yield including buying costs
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Net yield here is before mortgage interest, depreciation and income tax.
How rental yield is calculated
| Measure | Formula | Example |
|---|---|---|
| Gross yield | Weekly rent × 52 ÷ purchase price × 100 | $31,200 ÷ $650,000 = 4.80% |
| Rent after vacancy | Weekly rent × (52 − vacant weeks) | $600 × 50 = $30,000 |
| Running costs | Management fee + rates + strata + insurance + repairs | $2,100 + $2,600 + $1,800 + $1,500 = $8,000 |
| Net yield | (Rent after vacancy − running costs) ÷ price × 100 | $22,000 ÷ $650,000 = 3.38% |
Gross yield is the quick figure you see in listings and suburb reports, and it is useful for comparing properties at a glance. Net yield is closer to what you actually keep, because it allows for empty weeks and the costs every landlord pays whether or not the property is financed.
Houses and units compared
Units can show a higher gross yield because the price is lower relative to the rent, but strata fees can eat into the difference.
| House | Unit | |
|---|---|---|
| Price | $650,000 | $480,000 |
| Weekly rent | $600 | $520 |
| Vacant weeks | 2 | 3 |
| Management fee | 7% | 6.6% |
| Rates, strata, insurance, repairs | $2,600 / $0 / $1,800 / $1,500 | $2,200 / $4,000 / $900 / $1,000 |
| Gross yield | 4.80% | 5.63% |
| Net yield | 3.38% | 3.27% |
In this example the unit’s gross yield is 0.83 percentage points higher, but once the $4,000 of strata fees is counted its net yield ends up slightly lower than the house’s.
What to include in running costs
- Property management: usually a percentage of rent collected, plus letting fees when a new tenant moves in.
- Council and water rates: landlords pay council rates and water service charges; tenants can often be charged for water usage.
- Strata or body corporate levies for apartments, units and many townhouses.
- Landlord insurance and building insurance if the property is not strata-titled.
- Repairs and maintenance, land tax, pest control and safety checks such as smoke alarm servicing.
Leave out loan interest and depreciation: they depend on how you finance the property and on your tax position, not on the property itself. Most of these running costs are tax-deductible against rental income, which the ATO explains in its rental expenses guide.
Using yield wisely
- Yield is only half the return. Capital growth, which this calculator does not estimate, matters as much over the long term.
- Compare net yield with your loan’s interest rate. If the net yield is lower, the property is negatively geared and you will be topping it up from your own income.
- Add buying costs such as stamp duty to see your yield on the total money spent, not just the price.
- Use the real rent achieved for similar properties nearby, not the asking rent on a listing.
FAQs
What is a good rental yield in Australia?
There is no single answer. Yields vary a lot between suburbs, cities and property types, so compare similar properties in the same area and always look at the net figure, not just the gross one.
Is rental yield worked out on the purchase price or the current value?
Use the purchase price for a property you are about to buy. For one you already own, use its current market value to see the return on the money tied up in it today.
How many vacant weeks should I allow?
There is no fixed rule. Allow for the time between tenants and any repair work, and check vacancy rates for the suburb. The calculator starts with 2 weeks as an example.
Related calculators
- Borrowing Power CalculatorHow much a lender may lend you
- Capital Gains Tax CalculatorTax when you sell the property
- Mortgage Repayment CalculatorRepayments on the investment loan
Sources
- Westpac: What is rental yield and how is it calculated?
- ATO: How to claim rental expenses
- Moneysmart: Property investment
Figures current as of 13 October 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.