Rental Yield Calculator

Calculate the gross and net rental yield on a residential or commercial investment property.

Formulas Used

Annual Rental Income = Weekly Rent × (52 − Vacancy Weeks)

Gross Rental Yield = (Weekly Rent × 52) ÷ Property Value × 100

Gross yield uses the full 52-week year — the standard industry convention before vacancy adjustments.

Net Annual Income = Annual Rental Income (with vacancy) − Annual Expenses

Net Rental Yield = Net Annual Income ÷ Property Value × 100

Assumptions & References

  • Gross yield is calculated on 52 weeks of rent divided by the purchase price — consistent with the Real Estate Institute of Australia (REIA) convention.
  • Net yield deducts vacancy loss and ongoing expenses (council rates, water, landlord insurance, property management fees ~8–12%, maintenance) from gross income.
  • Property Value should reflect the total acquisition cost including stamp duty and legal fees for a more conservative yield estimate.
  • Typical vacancy allowance in Australia is 1–4 weeks per year depending on location and market conditions.
  • This calculator does not account for income tax, depreciation, negative gearing, or capital gains — consult a qualified accountant or financial adviser.
  • Reference: ATO — Residential Rental Properties

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