Rental Yield Calculator
Open Investment Tools → Property Investment Analysis, then choose Rental Yield Calculator.
What it helps you answer
Use this calculator to compare the rent a property earns with its purchase price and ongoing costs.
Enter the property price, rent, vacancy, mortgage details, and annual expenses. Review:
- gross and net rental yield
- monthly and annual rent
- estimated cashflow
- return on your cash deposit
- the rent or interest rate at which the property breaks even
- price-to-rent information when rent is greater than zero
How the calculation works
Gross yield is 52 weeks of rent divided by the purchase price. Net yield first removes vacancy,
property-management fees, council rates, insurance, maintenance, and body-corporate costs, then divides
the remaining income by the purchase price. Management fees apply to rent collected after vacancy.
The selected purchase type supplies the deposit assumption: currently 20% for a new build, 30% for an
existing property, or 100% for a cash purchase. Interest-only financing uses annual interest as the
repayment. Principal-and-interest financing uses a 30-year amortised repayment and separately tracks
the first year's interest and principal.
Cashflow is net rental income minus mortgage repayments. Return on deposit compares that cashflow with
the cash deposit. The break-even rent covers vacancy-adjusted management fees, fixed costs, and the
mortgage; the break-even rate estimates the interest rate at which annual cashflow reaches zero.
What the results show
Quick mode shows gross yield, annual and monthly rent, and the price-to-rent multiple. Full mode adds
net yield, weekly and annual cashflow, return on deposit, cost allocation, first-year mortgage split,
and rent and interest-rate break-even points.
Reading the result
Gross yield ignores most ownership costs. Net yield and cashflow provide a fuller comparison, but they
are only as useful as the expense and vacancy assumptions entered. Include realistic management,
maintenance, rates, insurance, and vacancy allowances.
For a multi-year property model, use
Property Investment Calculator.