Investor Guides

Rental Yield Calculator

Gross Yield vs Net Yield Updated 21 May 2026
← Back to Blog

Enter the purchase price, weekly rent, and holding costs. The calculator shows gross yield (what agents advertise) alongside net yield (what you actually earn after all expenses), plus a full cost breakdown and monthly cash position before loan costs.

Property
$
$ /wk
$
Annual costs
% of rent
$ /yr
$ /yr
$ /yr
% of value
wks/yr
$ /yr
Results
What agents advertise
Before costs
Gross Yield
Gross Yield
Annual rent
Purchase price
Annual rent / purchase price
The number that matters
After all costs
Net Yield
Net Yield
Net annual income
Total capital invested
Net income / total capital
Annual breakdown
Holding Costs
Property management
Council rates
Water rates
Landlord insurance
Maintenance
Vacancy allowance
Strata levies
Total annual costs
Monthly cash position
Enter your property details above to see a yield comparison.
Why gross yield misleads
Gross yield divides annual rent by purchase price. It ignores all holding costs. The gap between gross and net yield is typically 1.5 to 2 percentage points for houses, and 2.5 to 3.5 points for apartments with strata. A listing advertising 5.5% gross can land at 3% net once all costs are in. Net yield is the only number that tells you what the property actually costs to hold each year.
Net yield vs cash flow
Net yield measures your return on capital before loan costs. It does not include mortgage interest, depreciation, or the tax effect of negative gearing. A property with a 3.5% net yield and a 5.5% mortgage rate will be cash flow negative by roughly 2% of the loan amount per year. Use the cash flow calculator for a full after-loan and after-tax picture.

Disclaimer: This calculator is for illustrative purposes only and is not financial or investment advice. Holding costs vary by property type, location, age, and management arrangement. Vacancy allowances, strata levies, and maintenance costs are estimates. Monthly cash position figures do not account for mortgage interest, depreciation, or income tax effects. Speak to a qualified accountant or buyer's agent before making investment decisions.

Work With Me

Want Me to Run the Numbers on a Real Property?

Book a free strategy call. I'll look at the actual yield, cash flow, and growth fundamentals on any property you're considering and tell you honestly whether the numbers stack up.

Book a Free Strategy Call →