Rental Yield Calculator Australia – Gross and Net Yield
Work out gross and net rental yield from the price, weekly rent, vacant weeks, loan interest and annual holding costs you enter. The same calculator also shows annual cash flow, the taxable rental result, and the change in resident income tax plus the Medicare levy for2026-27 or 2025-26. Expense deductibility follows official ATO rental-property pages.
Gross yield and net yield
Gross yield uses the full 52-week rent so you can compare listings on a like-for-like rent-to-price basis. Net yield starts from rent after vacancy, then subtracts the holding costs you enter and one year of simple interest on the loan. The remaining cash flow is divided by the property price. A negative net yield means the year’s cash costs exceed the rent collected.
Interest is included in net yield on this page so the percentage lines up with annual cash flow. Depreciation is excluded from yield because it is not cash. It still affects the taxable rental result shown beside the yields.
What the ATO treats as a rental cost
For tax, the ATO groups rental expenses into amounts you can deduct in the year you incur them (for example interest, council rates, insurance, agent fees, and repairs), amounts claimed over several years (capital works, borrowing expenses, and decline in value of many depreciating assets), and amounts you cannot deduct (private use, most residential rental travel, and buying or selling costs). This worksheet only deducts the dollar amounts you type. It does not decide whether a particular invoice is a repair or a capital improvement.
Residential rent you receive is assessable income. You include your ownership share of rent paid to you or to an agent. This page models one resident individual owner with a 100% interest.
What this page does not do
- It does not forecast rent growth or sale prices.
- It does not compare lenders or advertised loan products.
- It does not calculate land tax from a land value — use the land tax calculators.
- It does not size a new loan — use the borrowing power calculator.
Frequently Asked Questions
How is gross rental yield calculated?
Gross yield is the full year’s potential rent divided by the property price. Potential rent is weekly rent × 52. Vacancy, expenses and interest are ignored at this step so you can see the headline rent-to-price ratio. A $600,000 property rented at $550 a week has potential rent of $28,600 and a gross yield of 4.77%.
How is net rental yield calculated on this page?
Net yield is annual cash flow divided by the property price. Cash flow is rent collected (after vacancy weeks) minus council rates, strata, insurance, management, repairs, and one year of simple interest on the loan you enter. Depreciation is left out of yield because it is not a cash cost. Different sites exclude interest from “net yield”; this page keeps it in so the percentage matches the cash-flow result.
How do vacancy weeks change the result?
Each vacant week removes one week of rent from the amount collected. Gross yield still uses the full 52-week rent. Net yield and cash flow use the lower collected figure. The ATO may still allow deductions during a vacancy if the property is genuinely available for rent on commercial terms. This calculator does not decide that question.
Does yield include capital growth?
No. Yield here is a rent-and-cost ratio for one year. It does not forecast sale prices or capital gains. Those are a different calculation — see the capital gains tax calculator if you are looking at a later disposal.
How does this relate to negative gearing?
The same worksheet estimates the taxable rental profit or loss and the change in income tax plus the Medicare levy. A property can show a modest net yield (or a negative one) and still produce a larger taxable loss once depreciation is included. The tax-focused write-up lives on the negative gearing calculator.
Is this investment advice?
No. The page applies arithmetic to the figures you enter and cites ATO rules for which costs can be deductions. It is general information only. In line with ASIC’s general-information approach, we do not recommend a property, a loan, or any other financial product. Speak with a licensed adviser if you need personal advice.