Rental Yield Calculator
Calculate your rental property gross yield percentage.
See instantly if your investment property is delivering strong returns.
What Is Rental Yield?
Rental yield is the annual return on a property investment expressed as a percentage. It tells you how much rent you earn relative to what the property is worth. A higher yield means your money is working harder for you.
Gross vs Net Yield
Gross rental yield is the simple, before-expenses calculation:
Gross Yield = (Annual Rent ÷ Property Value) × 100
Net rental yield factors in expenses like maintenance, insurance, property management, and vacancy:
Net Yield = ((Annual Rent − Annual Expenses) ÷ Property Value) × 100
This calculator gives you the gross yield, which is the standard benchmark used when comparing properties.
What Is a Good Rental Yield?
| Yield Range | Assessment |
|---|---|
| Below 4% | Low — may struggle to cover costs |
| 4% – 6% | Average — typical in major cities |
| 6% – 8% | Good — solid cash-flow positive |
| 8%+ | Excellent — strong investment |
Keep in mind that high-yield properties are often in areas with lower capital growth, while low-yield properties in prime locations may appreciate faster in value. The best investment balances both.
Practical Example
A property purchased for $400,000 that rents for $2,000/month:
- Annual rent = $2,000 × 12 = $24,000
- Gross yield = ($24,000 ÷ $400,000) × 100 = 6.0%
This is a solid yield — above the average for most capital cities.
Tips for Landlords
- Always verify comparable rental rates in the area before buying.
- Factor in vacancy periods (typically 2–4 weeks per year).
- Property management fees typically reduce net yield by 0.5–1.5%.
- Rising interest rates reduce the attractiveness of low-yield properties.