Rental Yield Calculator Australia 2026
Calculate gross and net rental yields for investment properties
Free calculator with market comparison for all capital cities. No email required. Instant results.
Property Details
Annual: $28,600
Compare your yield against market averages
Annual Expenses
Typical: $1,500-$3,000/year
$0 for houses, $2K-$6K+ for apartments
Typical: $1200/year
Typical: 8% of rent ($2,288/year)
Note: Rental yields vary by location, property type, and market conditions. This calculator provides estimates based on your inputs. Actual yields may differ.
Enter property details to calculate rental yield.
How to Calculate Rental Yield — Step by Step
Rental yield is the most important metric for comparing investment properties. It tells you the annual return your property generates as a percentage of its value. There are two types of rental yield every investor should understand: gross yield and net yield.
Step 1: Calculate Gross Rental Yield
Gross rental yield is the simplest calculation and is useful for quickly comparing properties. It only considers rental income relative to the purchase price, without accounting for any holding costs.
Gross Rental Yield Formula
Gross Yield = (Annual Rental Income ÷ Property Purchase Price) × 100
Example:
Weekly rent: $550 × 52 weeks = $28,600 annual income
Property price: $600,000
Gross yield: ($28,600 ÷ $600,000) × 100 = 4.77%
Step 2: Calculate Net Rental Yield
Net rental yield provides a far more accurate picture of your actual return. It deducts all annual holding costs from your rental income and uses the total property cost (including stamp duty and other purchase costs) as the denominator. This is the figure serious investors use when making purchase decisions.
Net Rental Yield Formula
Net Yield = ((Annual Rental Income − Annual Expenses) ÷ Total Property Cost) × 100
Example (same property):
Annual expenses: Council rates $2,000 + Insurance $1,800 + Management $2,860 (10%) + Maintenance $1,500 = $8,160
Net rental income: $28,600 − $8,160 = $20,440
Total cost (incl. stamp duty ~$22,000): $622,000
Net yield: ($20,440 ÷ $622,000) × 100 = 3.29%
In this example, the difference between gross yield (4.77%) and net yield (3.29%) is 1.48 percentage points — a significant gap that highlights why net yield is the more reliable metric. Properties with high strata fees or older buildings requiring more maintenance will show an even larger gap between gross and net yields.
What is a Good Rental Yield in 2026?
Rental yields vary significantly across Australian capital cities. Generally, anything above 5% gross is considered strong, 3-5% is average, and below 3% is yield-poor (though these properties may offer strong capital growth). Here are the current median yields by city for 2026:
| City | Median House Yield | Median Unit Yield | Rating |
|---|---|---|---|
| Sydney | 2.8% | 3.8% | Below average |
| Melbourne | 3.2% | 4.2% | Average |
| Brisbane | 4.0% | 5.2% | Above average |
| Perth | 4.5% | 5.8% | Strong |
| Adelaide | 4.2% | 5.3% | Above average |
| Hobart | 3.8% | 4.8% | Average |
Units consistently deliver higher yields than houses because they have lower purchase prices relative to achievable rents. However, houses typically offer stronger capital growth over long holding periods. Perth and Adelaide currently lead the capital cities for yield, driven by tight rental vacancy rates and strong population growth from interstate migration.
Gross vs Net Rental Yield Explained
Gross rental yield is a quick comparison tool. It is useful for scanning listings on real estate websites and filtering properties worth investigating further. Because it ignores expenses, gross yield overstates the actual return you will receive. Think of it as the "headline number."
Net rental yield is the true measure of investment return. It accounts for all holding costs — council rates, water rates, insurance, property management fees, maintenance, and strata levies. Net yield tells you what the property actually puts in your pocket (or takes out of it) each year.
Rule of Thumb
Net yield is typically 1-1.5% lower than gross yield for standard houses, and 1.5-2.5% lower for units with strata fees. Always use net yield when making investment comparisons — two properties with the same gross yield can have very different net yields depending on their expense profiles.
How the Calculator Works
Enter Property Details
Provide property price, weekly rent, and annual expenses (rates, insurance, management).
Calculate Yields
We calculate gross yield (rent/price) and net yield (accounting for all expenses).
Compare & Analyze
See how your yield compares to market averages and get investment insights.
Comprehensive Yield Analysis (2026)
- ✓ Gross Rental Yield: Annual rent as percentage of property price
- ✓ Net Rental Yield: Accounts for all expenses (rates, strata, insurance, management, maintenance)
- ✓ Market Comparison: Compare against Sydney (3.0%), Melbourne (3.5%), Brisbane (4.5%), Perth (5.3%), Adelaide (4.8%)
- ✓ Yield Quality Assessment: Excellent (6%+), Very Good (5-6%), Good (4-5%), Fair (3-4%)
- ✓ Auto-Estimates: Maintenance cost estimator (1.5% property value), property management fee calculator
- ✓ Annual Breakdown: Clear income vs expense breakdown showing net annual income
Calculator FAQs
What is rental yield?▼
Rental yield is the annual return on your investment property expressed as a percentage of the property price. Gross yield = (Annual Rent / Property Price) × 100. Net yield accounts for expenses: (Annual Rent - Expenses) / Property Price × 100.
What is a good rental yield in Australia?▼
Good rental yields vary by location. Sydney averages ~3% (capital growth focus), Melbourne ~3.5%, Brisbane ~4.5%, Perth ~5.3%, Adelaide ~4.8%. Regional areas often achieve 5-7%+. Generally, 4-6% gross yield is considered good for metro areas.
What is the difference between gross and net rental yield?▼
Gross rental yield only considers rental income vs property price. Net rental yield deducts expenses (council rates, strata, insurance, management fees, maintenance) giving a more accurate picture of actual returns. Net yield is typically 1-3% lower than gross yield.
Is high rental yield always better?▼
Not necessarily. High-yield properties (6%+) often have lower capital growth potential and may be in regional or less desirable areas. Low-yield properties (3-4%) in Sydney/Melbourne inner suburbs typically offer stronger capital growth. The best strategy balances yield AND growth.
How do I improve my rental yield?▼
Strategies to increase yield: (1) Increase rent (market research for competitive rates), (2) Reduce expenses (self-manage, negotiate insurance, optimize maintenance), (3) Add value (renovations that command higher rent), (4) Minimize vacancy (good property management, tenant retention), (5) Buy in higher-yield markets.
Should I invest in high-yield or low-yield properties?▼
It depends on your strategy. High-yield (5%+) suits investors seeking cash flow and passive income. Low-yield (3-4%) suits investors targeting capital growth and wealth accumulation. Balanced investors target 4-5% yield in growth markets (Brisbane, Adelaide). Consider your tax position, cash flow needs, and investment timeframe.
How do I calculate rental yield on a property?▼
Gross rental yield = (Annual Rental Income / Property Purchase Price) x 100. For example, $550/week = $28,600/year on a $600,000 property gives a 4.77% gross yield. Net rental yield subtracts expenses first: (Annual Rent - Annual Expenses) / Total Property Cost x 100. Use our calculator above for instant gross and net yield calculations.
What rental yield should I aim for in Australia?▼
A gross rental yield of 4-5% is generally considered healthy for metro areas in 2026. However, the ideal yield depends on your strategy: income-focused investors should target 5%+ (often found in regional areas or units), while growth-focused investors may accept 3-4% in suburbs with strong capital appreciation potential. The key is balancing yield with long-term growth.
Why is net yield more important than gross yield?▼
Net yield accounts for the real costs of holding an investment property — council rates, insurance, property management fees, maintenance, and strata. Gross yield can look attractive on paper, but once you deduct $8,000-$15,000 in annual expenses, the true return is often 1-1.5% lower. Always use net yield when comparing investment properties or making purchase decisions.
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