Gross rental yield
Annual rentProperty price
× 100
- $600 × 52 weeks = $31,200 a year
- $31,200 ÷ $650,000 = 0.048
- 0.048 × 100 = 4.80% gross yield
Use it for: quickly comparing listings and suburbs.
Free Australian rental yield calculator
Rental Yield Calculator
Work out gross yield, net yield and weekly cash flow for any Australian investment property, then see how it stacks up against your capital city.
Gross rental yield
0.00%
Net rental yield
0.00%
- Annual rent (52 weeks)
- $0
- Less vacancy
- $0
- Less running costs
- $0
- Net income before loan
- $0
- Weekly, before loan
- $0
- Loan interest ($0)
- $0
- Weekly cash flow after interest
- $0
Where the rent goes
Before tax and depreciation. Net yield excludes loan interest so properties can be compared like for like.
What is rental yield?
Rental yield is the yearly rent a property earns, shown as a percentage of what it cost to buy. Gross yield uses rent alone. Net yield takes off the running costs first, so it shows what the property really returns before finance. Australia's national gross yield was 3.85% in September 2026.
Read next: What is a good rental yield?Gross vs net rental yieldGlossary
The formulas
How to calculate rental yield
Two formulas, one worked example. We use a $650,000 property renting for $600 a week, the same figures loaded in the calculator above.
Net rental yield
Annual rent − annual costsProperty price
× 100
- Costs: rates $2,000, water $800, insurance $1,500, management $2,100, maintenance $1,000, 2 weeks vacancy $1,200 = $8,600
- $31,200 − $8,600 = $22,600 ÷ $650,000 = 0.0348
- 0.0348 × 100 = 3.48% net yield
Use it for: judging what the property actually returns before finance.
Net yield leaves out loan interest. It measures the property, not your loan, so two buyers with different finance get the same answer. Open the loan section in the calculator to see your weekly cash flow after interest.
Read next: Gross vs net rental yield explained5 worked rental yield examplesYield vs cap rate vs ROI
Benchmarks
What is a good rental yield in Australia?
As a guide, a gross yield above 4% is solid for a capital city property and above 5% is strong. The national average was 3.85% in September 2026. Here is how each capital compares.
| City | Gross yield | Chart |
|---|---|---|
| Darwin | 6.5% | |
| Hobart | 4.4% | |
| Canberra | 4.4% | |
| Melbourne | 4.1% | |
| Perth | 4.0% | |
| Adelaide | 3.6% | |
| Brisbane | 3.5% | |
| Sydney | 3.4% |
Capital city units
4.7%
Capital city houses
3.4%
Units usually yield more because they cost less relative to the rent they earn. Houses have historically delivered more capital growth.
Source: Cotality (formerly CoreLogic), September 2026. Gross yields, combined houses and units unless stated.
Go deeper: What is a good rental yield in Australia?Units vs houses: which yields more?
Side by side
Gross vs net rental yield
| Gross yield | Net yield | |
|---|---|---|
| Formula | Annual rent ÷ price × 100 | (Annual rent − costs) ÷ price × 100 |
| Includes costs | No | Rates, insurance, strata, management, maintenance, land tax, vacancy |
| Includes loan interest | No | No |
| Best for | Shortlisting properties and suburbs fast | Deciding whether a property stacks up |
| Our example | 4.80% | 3.48% |
Strategy
Rental yield vs capital growth
Most suburbs lean one way. High-yield areas tend to have lower prices relative to rent, which helps cash flow but often means slower growth. Low-yield areas, like much of Sydney, have historically grown faster in value while costing more to hold.
Neither is wrong. A yield-focused investor wants rent to cover costs so they can keep buying. A growth-focused investor accepts a shortfall now for a bigger equity gain later. Many portfolios mix both.
The rare win is a suburb with solid yield and growth drivers: low vacancy, limited new supply, rising population and infrastructure investment.
Read next: Rental yield vs capital growthHow to increase rental yieldRental yield myths
Before you trust a high yield, check
- Vacancy rate below 2% means tenants are competing for homes
- Days on market falling suggests demand is building
- New supply pipeline that could flood the rental market
- Population and jobs growth in the area
- One-industry towns where yields can collapse with a mine or employer
- Property condition and the maintenance it will need
How to use it
Using the calculator in four steps
Enter price and rent
Use the asking price or your offer, and the weekly rent from comparable listings or a property manager's appraisal.
Add running costs
Pull council and water rates from the listing or council site, get an insurance quote, and check strata levies for units.
Pick a benchmark
Compare with your capital city, or with houses or units across all capitals, to see if the yield is above or below the market.
Add your loan
Open the loan section to see weekly cash flow after interest. Copy the link to save or share your results.
FAQ
Rental yield questions, answered
How do you calculate rental yield?
Gross rental yield is annual rent divided by the property price, multiplied by 100. Net rental yield subtracts the annual costs of owning the property (rates, insurance, strata, management, maintenance, land tax and vacancy) from the annual rent before dividing by the price.
What is a good rental yield in Australia?
There is no single number, but as a guide the national gross yield was 3.85% in September 2026. A gross yield above 4% is generally solid for a capital city property and above 5% is strong. Regional areas often achieve 5% to 7%, with higher vacancy and growth risk.
What is the difference between gross and net rental yield?
Gross yield only uses rent and price, so it is quick for comparing properties. Net yield also takes off the running costs of the property, so it shows what the property actually returns before finance. Net yield is always lower than gross yield.
Does net rental yield include mortgage interest?
No. Net rental yield measures how the property performs on its own, so loan interest is left out. That way two people with different loans get the same yield for the same property. Use the cash flow figure in the calculator to see the impact of your loan.
Which Australian capital city has the highest rental yield?
As at September 2026, Darwin had the highest gross rental yield of the capital cities at 6.5%, and Sydney had the lowest at 3.4%.
Do units have higher rental yields than houses?
Usually, yes. Units cost less to buy relative to the rent they earn. As at September 2026, capital city units averaged about 4.7% gross yield compared with about 3.4% for houses. Houses have historically delivered stronger long-term capital growth, and strata fees reduce a unit's net yield.
Is a high rental yield always better?
Not always. A very high yield can point to a small or volatile market, high vacancy, an ageing property or limited capital growth. Look at vacancy rates, days on market, supply and population trends alongside yield before you buy.
How much should I allow for vacancy?
Two to three weeks a year is a common allowance in tight rental markets. If the suburb has a higher vacancy rate or the property is between tenants often, allow more. The calculator lets you set vacancy in weeks.
More tools
Property investment calculators
Net rental yield calculatorGross and net yield after every running cost, compared with your city.OpenRental cash flow calculatorWeekly cash flow before and after tax, with gearing status.OpenTarget yield calculatorThe rent you need, or the most you should pay, for your target yield.OpenCommercial yield calculatorNet yield, yield on cost and value at a market cap rate.OpenShort-term vs long-term rentalCompare Airbnb-style income with a standard lease, and find the break-even occupancy.OpenGranny flat calculatorWhat a second dwelling does to your yield, and how fast it pays back.OpenRooming house calculatorRoom-by-room income and net yield for co-living, against a standard lease.Open
From the makers of this calculator
Find high-yield suburbs before you find the property
SuburbsFinder ranks 15,000+ Australian suburbs by rental yield, vacancy, growth and supply so you can shortlist in minutes, not weekends.
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