Rental Yield Calculator Australia
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.
Your numbers
Example value chosen by Virtual Buyers Agent. Change it to your own figure.
Example value chosen by Virtual Buyers Agent. Change it to your own figure.
Rates, insurance, strata, management and maintenance — your own figures, from documents where you have them.
Example value chosen by Virtual Buyers Agent. Change it to your own figure.
Result
Annual rent divided by price
Rent less holding costs, divided by price
How each figure was worked out2 formulas, shown in full
| 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% |
How this works
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.
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Consider your circumstances and seek professional advice before acting.
Inputs, assumptions and limits20 points, shown in full
Inputs used
- Purchase price: $650,000
- Weekly rent: $600
- Weekly holding costs: $150
- Upfront buying costs: $35,000
- Deposit: 20%
- Interest rate: 6%
- Loan term: 30 years
Assumptions
- Loan repayments use a standard principal-and-interest amortisation formula. Interest-only repayments are not modelled here.
- A year is 52 weeks, and rent and holding costs are treated as constant across it.
- Every expense figure is one you typed. Nothing is prefilled from a market average, and no vacancy, management or maintenance allowance is added on your behalf.
- Rent is treated as received for all 52 weeks. If you want a vacancy allowance, reduce the weekly rent you enter.
Limits of this result
- Excludes tax of every kind. No deduction, offset, refund or negative-gearing outcome is calculated, and none should be inferred.
- Excludes land tax, lenders mortgage insurance, lender serviceability assessment, borrowing capacity, and any cost you did not enter.
- A quick feasibility check, not a substitute for review by a broker, lender, accountant, or licensed adviser.
- A figure shown as — could not be calculated from what you entered. It is not zero.
Where the numbers come from
- Your entries — Live — Every input is yours. This page holds no market data and looks nothing up.
- Standard principal-and-interest amortisation formula — Shared with the Investment Calculator and Scenario Modeller in the app (`monthlyRepayment`), so the three cannot disagree.
Check before acting
- Confirm the repayment and what you can borrow with your lender or broker — this page does not assess serviceability.
- Ask a registered tax agent how the numbers change after tax. This page deliberately does not.
- Get quotes for insurance, rates, strata and management rather than relying on a typical figure.
How rental yield is calculated
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.
Getting the inputs right
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.
What yield leaves out
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.
Frequently asked questions
Related calculators
Check before you offer.
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.
Free plan: 3 properties per month. No credit card required.
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Consider your circumstances and seek professional advice before acting.