Rental Yield Calculator
Calculate gross and net rental yield, plus annual cashflow for an investment property.
Average Australian vacancy rate is 1-3%
Typically 5-8% of rent. 0% if self-managed.
Council rates, insurance, strata, maintenance, water
How It Works
Calculates gross yield from annual rent (weekly x 52) divided by property value. Adjusts for vacancy rate, then subtracts management fees and annual expenses for net yield. Cashflow is annual rent minus vacancy, management, and all expenses — positive means the property covers its costs before loan repayments.
Frequently Asked Questions
What is a good rental yield in Australia?
Gross yields of 4-6% are considered good for capital city properties. Regional areas can achieve 6-10%+. Net yield (after expenses) is typically 1-3% lower. Higher yields often come with lower capital growth potential and vice versa.
How do you calculate rental yield?
Gross yield = (annual rent / property value) x 100. Net yield = ((annual rent - annual expenses) / property value) x 100. For example, $550/week rent on a $600,000 property = $28,600 / $600,000 = 4.77% gross yield.
What expenses can I claim on an investment property?
Deductible expenses include: loan interest, property management fees, insurance, council rates, water rates, strata fees, repairs and maintenance, depreciation (building and fixtures), advertising for tenants, and travel to inspect the property (if meeting ATO rules).
What vacancy rate should I use?
National average vacancy is 1-2% (2024). Use 2-3% for capital cities, 3-5% for regional towns. High-demand inner-city apartments may have near-zero vacancy. Always check SQM Research or Domain for current local vacancy rates.
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