This page explains exactly how the rental yield calculator works, so you can check our numbers or reproduce them in your own spreadsheet.
At a glance
- Gross yield = weekly rent x 52 / purchase price x 100
- Net yield = (annual rent – vacancy – running costs) / purchase price x 100
- Net yield excludes loan interest, tax and depreciation
- Cash flow after interest uses an interest-only estimate on the loan amount
- Benchmarks: Cotality (formerly CoreLogic), September 2026
Gross rental yield
We multiply the weekly rent by 52 weeks to get annual rent, divide by the purchase price, and multiply by 100.
Gross yield does not account for vacancy. This matches how the industry quotes gross yield, so our figures can be compared with published benchmarks and listing data.
Net rental yield
Net yield starts with annual rent, then takes off:
- Vacancy: weekly rent multiplied by the number of vacant weeks you enter.
- Property management: your percentage applied to the rent actually collected (annual rent less vacancy), because managers charge on rent received.
- Running costs you enter as yearly amounts: council rates, water rates, landlord insurance, strata or body corporate levies, maintenance and land tax.
The result is divided by the purchase price and multiplied by 100.
Why loan interest is excluded
Net yield measures the property, not the way it is financed. Two investors buying the same property with different loans should get the same net yield, otherwise the figure cannot be used to compare properties. Interest is shown separately in the cash flow figure. See gross vs net rental yield for more on this.
Why purchase costs are excluded
We divide by the purchase price, not the total cost including stamp duty and legal fees, because that is how yields are published. If you want a yield on your total outlay, our guide to property investment metrics shows how to calculate yield on cost and cash-on-cash return.
Cash flow after interest
If you open the loan section, the calculator works out:
- Loan amount = purchase price x loan to value ratio (LVR)
- Annual interest = loan amount x interest rate (an interest-only estimate)
- Cash flow = net income before loan – annual interest, shown per week
This is before tax, depreciation and principal repayments. Negative cash flow is common for capital city properties at current interest rates, which is why yield vs capital growth matters when you set your strategy.
Default values
The calculator loads with an example property so the results are never blank: a $650,000 property renting for $600 a week, with typical costs and a 7% interest rate, close to the current average investor rate. Replace every figure with your own. The worked examples in our guides use the same formulas, and you can see five of them in rental yield examples.
Other calculators
Our other calculators use the same method, adding tax for cash flow, room-by-room income for rooming houses and outgoings recovery for commercial property.
Benchmarks
The comparison bar and the capital city table use gross yields for all dwellings (houses and units combined), plus separate capital city figures for houses and units.
We update these every quarter. The current figures are as at September 2026.
Limitations
- Results are only as good as the figures you enter. Check rates and levies with the council and strata manager.
- Land tax depends on your state and total land holdings, so we ask you to enter it rather than estimate it.
- The calculator does not model tax, depreciation, rent growth or capital growth.
This is general information, not financial advice. Read our disclaimer.