What is a good rental yield in Australia?

In capital cities, 4-5% gross yield is typical. Regional areas can offer 6-8%+. For net yield, anything above 3% after expenses is generally considered positive.

Gross vs net yield — which matters more?

Net yield is far more important for decision-making as it accounts for real costs. A property with 6% gross yield but 3% net yield is worse than one with 5% gross and 4% net.

What is positive and negative gearing?

Positive gearing means rental income exceeds all costs (including loan interest). Negative gearing means costs exceed income — the loss is tax-deductible against your other income.

Rental Yield Calculator Australia

Calculate gross and net rental yield, and see cash flow at different interest rates

Enter your investment property details to see both gross and net yield, plus a cash flow analysis showing where the property becomes positively or negatively geared.

Property Details

Property Price ($)

Weekly Rent ($)

Annual Expenses ($)

Council rates, insurance, management fees, maintenance, strata, etc.

Vacancy Rate (%)

Average vacancy rate in Australia is around 2-4%

Rental Yield Analysis

Gross Yield

4.33%

Net Yield

3.20%

Gross annual income$26,000

Less vacancy ($780)-$780

Effective annual income$25,220

Net annual income (after expenses)$19,220

Net monthly income$1,602

Expense ratio23.1%

Cash Flow at Different Interest Rates

Assuming 80% LVR, interest-only loan

4%+$20/yr(+$2/mo)

4.5%-$2,380/yr(-$198/mo)

5%-$4,780/yr(-$398/mo)

5.5%-$7,180/yr(-$598/mo)

6%-$9,580/yr(-$798/mo)

6.5%-$11,980/yr(-$998/mo)

7%-$14,380/yr(-$1,198/mo)

7.5%-$16,780/yr(-$1,398/mo)

8%-$19,180/yr(-$1,598/mo)

How to Use This Calculator

1Enter the property purchase price
2Enter the expected weekly rent
3Add annual expenses (rates, insurance, management, maintenance, strata)
4Set a vacancy rate (2-4% is typical for most Australian markets)
5Review your gross yield, net yield and cash flow at different interest rates

What Is Rental Yield?

Rental yield measures the annual rental income as a percentage of the property's value. Gross yield uses the full rental income, while net yield subtracts expenses like rates, insurance, management fees and vacancy.

A higher net yield means a property generates more income relative to its price. Generally, 4-5% gross yield is considered solid in Australian metro areas, while regional areas may offer 6-8%+.

Key Factors Affecting Rental Yield

Location: Inner-city and capital city properties typically have lower yields (3-4%) but stronger capital growth. Regional areas often offer higher yields (5-8%).
Property type: Units/apartments generally have higher yields than houses due to lower purchase prices relative to rent.
Vacancy rates: A 2-week vacancy per year costs about 4% of your rental income. Markets with low vacancy (<2%) are more reliable.
Expenses: Strata fees (for units), council rates, insurance, property management (typically 7-10% of rent) and maintenance (budget 1-2% of property value) all reduce net yield.

Investment Property Tips

•A gross yield above 5% is generally considered good for a capital city property in Australia
•Don't forget to account for depreciation when calculating your total return — it can significantly improve after-tax returns
•Negative gearing (where expenses exceed income) can provide tax deductions that reduce the true cost of holding — rules tighten for some established-property purchases from 1 July 2027
•Always use net yield (not gross) for property comparisons — two properties with the same gross yield can have very different net yields

Frequently Asked Questions

Official Sources

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

About this calculator

This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.

Why these default assumptions are reasonable

Vacancy rate — 3%. The conventional benchmark of a balanced rental market. Published national vacancy has recently run well under it, so the default understates yield rather than flattering it — the safe direction for a purchase decision. Vacancy varies materially by suburb and moves with the market, so enter the published rate for the suburb you are actually pricing. Source · You can change this input.

This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.

Related Tools

Mortgage Calculator

Calculate repayments on your investment loan

Stamp Duty Calculator

Upfront costs when purchasing investment property

Capital Gains Tax Calculator

CGT when you sell an investment property

Borrowing Power Calculator

Find out how much you can borrow

Loading calculator…

About this calculator

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.

Why these default assumptions are reasonable

Vacancy rate — 3%. The conventional benchmark of a balanced rental market. Published national vacancy has recently run well under it, so the default understates yield rather than flattering it — the safe direction for a purchase decision. Vacancy varies materially by suburb and moves with the market, so enter the published rate for the suburb you are actually pricing. Source · You can change this input.