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