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Enter a purchase price, a weekly rent and your own holding costs to see gross and net rental yield, with the formula shown for each.
Annual rent divided by price
ExampleThis result still uses our example figures for purchase price and weekly rent, not yours. Change them to see your own numbers.
Rent less holding costs, divided by price
ExampleThis result still uses our example figures for purchase price, weekly rent and weekly holding costs, not yours. Change them to see your own numbers.
| Figure | Formula | With your numbers | Result |
|---|---|---|---|
| Gross rental yield | (weekly rent × 52) ÷ purchase price × 100 | ($600 × 52) ÷ $650,000 × 100 | 4.8% |
| Net rental yield | ((weekly rent − weekly holding costs) × 52) ÷ purchase price × 100 | ($31,200 − $7,800) ÷ $650,000 × 100 | 3.6% |
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Check your circumstances with appropriately licensed professionals before acting.
This page runs the same calculation as the Investment calculator inside Virtual Buyers Agent — the shared `computeInvestment` function, not a copy of it. It uses only the values you typed on this page.
Gross rental yield is annual rent divided by the purchase price, times 100. Annual rent is the weekly rent multiplied by 52, so it assumes the property is leased for the whole year.
Net rental yield subtracts annual holding costs from annual rent before dividing by the price. Which costs you include is your choice, and it changes the answer — so a net yield is only comparable to another net yield built the same way.
Yield is a ratio, not an amount. It says nothing about whether the rent covers the loan; that is cash flow, and it is a different calculation.
Use a rent you can evidence rather than an advertised figure — a property manager can tell you what comparable properties in the same street are actually leased at, and what they took to lease.
Use costs from documents rather than estimates: council and water rates from the rates notice, the strata levy from the disclosure statement, the management fee from the agency agreement, insurance from an actual quote. Every one of those is obtainable before you buy.
This page states no typical yield and no typical cost, because Virtual Buyers Agent has no source it can cite for either. A number we cannot source is a number we do not print.
Yield uses the purchase price, not what the property actually cost you. Duty, legals and inspections are excluded, so the yield on money you actually committed is lower than the figure shown.
It is a snapshot of one year at one rent. It does not model vacancy, a rent review, a levy increase or a rate change, and it says nothing about what the property might later be worth.
Annual rental income expressed as a percentage of the purchase price. Gross yield uses rent alone. Net yield subtracts the holding costs you enter before dividing by the price.
Multiply the weekly rent by 52 for annual rent, divide by the purchase price, multiply by 100. For example $550 a week is $28,600 a year; against a $500,000 price that is a gross yield of 5.72%.
That depends on what you are trying to achieve, what the property costs to hold and what else you could do with the money. Virtual Buyers Agent does not grade a yield as good or bad — that would be advice, and we are not licensed to give it.
Use a rent you can evidence. An advertised figure is an asking price, not a result. A property manager or agent can tell you what comparable properties in the same street are actually leased at.
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A calculator checks the arithmetic. Virtual Buyers Agent is a guided workspace for checking the rest — Summary, Financials, Location, Documents and Offer — with the source, assumptions and limits shown on every figure.
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Check your circumstances with appropriately licensed professionals before acting.