Rental Yield Calculator Australia 2025-26
Evaluating an investment property? See what it actually returns.
Calculate gross and net rental yield on investment property. Includes vacancy, management fees, mortgage cash flow analysis, and depreciation.
Gross yield only — deduct management fees, rates, insurance, and maintenance for net yield.
Select the question that matches where you are right now.
Rental yield measures the annual rental income as a percentage of the property's purchase price. Gross yield uses the raw rent figure; net yield deducts ongoing costs.
Annual rent ÷ property value × 100. A $600,000 property renting for $520/week produces: ($520 × 52) ÷ $600,000 × 100 = 4.5% gross yield.
In Sydney, 3–3.5% gross is typical. In Brisbane and Adelaide, 4–5% is achievable. Regional areas often yield 5–7%+. Higher yields typically come with higher vacancy risk or lower capital growth.
High-yield properties tend to have lower capital growth and vice versa. The optimal investment depends on your goal: income (yield) or long-term wealth accumulation (capital growth).
Net yield accounts for all ongoing costs. A 5% gross yield property may only return 3.5% net after expenses.
Property management fees (7–10% of rent), council rates (~$1,500/yr), water rates, landlord insurance (~$1,000–$1,500/yr), maintenance/repairs (budget 1% of value/yr), and vacancy periods.
(Annual rent − annual costs) ÷ property value × 100. On a $600k property with $27,040 rent and $8,000 costs: ($27,040 − $8,000) ÷ $600,000 = 3.17% net.
Net yield as commonly calculated does not deduct mortgage interest — that is captured in cash flow analysis. Net yield is a property performance metric independent of financing.
Rental yields vary significantly across Australian capital cities.
Gross yields typically 3–3.5% in established suburbs. Inner city apartments may yield 3.5–4.5%. High property values compress yields despite strong rents.
Similar to Sydney: 3–3.5% typical in established areas. Some outer suburban and growth corridor areas reach 4–4.5%.
Strong performer since 2022: 4–5.5% gross yields across many suburbs. Lower entry prices with competitive rents. Perth also in this range.
After calculating yield, these calculators help complete your investment analysis.
Include capital growth alongside rental yield for a complete investment return picture.
ROI calculator → →Calculate the maximum investment loan your income can support.
Borrowing capacity calculator → →Model the capital gains tax on your investment property when you sell.
CGT calculator → →How rental yield is calculated on investment property
Gross yield formula
Gross rental yield = (Annual rental income ÷ Property value) × 100. For a $650,000 property renting at $500/week: ($500 × 52) ÷ $650,000 × 100 = 4.0% gross yield.
| Property value | Weekly rent | Annual rent | Gross yield |
|---|---|---|---|
| $400,000 | $380 | $19,760 | 4.9% |
| $500,000 | $420 | $21,840 | 4.4% |
| $600,000 | $500 | $26,000 | 4.3% |
| $750,000 | $600 | $31,200 | 4.2% |
| $1,000,000 | $750 | $39,000 | 3.9% |
Rental yield examples by city and property type — 2025
| City/area | Typical property price | Weekly rent | Gross yield |
|---|---|---|---|
| Sydney inner ring | $1,200,000 | $800 | 3.5% |
| Sydney outer west | $700,000 | $550 | 4.1% |
| Melbourne inner | $900,000 | $650 | 3.8% |
| Brisbane established | $650,000 | $600 | 4.8% |
| Adelaide metro | $550,000 | $500 | 4.7% |
| Perth metro | $600,000 | $580 | 5.0% |
| Regional NSW | $450,000 | $420 | 4.9% |
Gross yield vs net yield — what the numbers really mean
Typical annual costs on a $600,000 property
Management fees: $2,000–$2,800 (8–10% of rent). Council rates: $1,200–$2,000. Water: $400–$800. Insurance: $1,000–$1,500. Maintenance (1% rule): $6,000. Total: approximately $11,000–$13,000/year.
Impact on net yield
A 4.5% gross yield on a $600,000 property with $12,000/year in costs produces: ($27,000 − $12,000) ÷ $600,000 = 2.5% net yield. This is significantly lower than the gross figure and is the true income return before mortgage interest.
Rental yield comparison across Australian capital cities — 2025
These figures are indicative ranges for established residential property. Yields vary significantly by suburb, property type, and condition.
| City | Typical gross yield range | Growth outlook | Comment |
|---|---|---|---|
| Sydney | 2.5–4.0% | Moderate | High prices compress yields |
| Melbourne | 2.8–4.2% | Moderate | Slight oversupply in some apartments |
| Brisbane | 4.0–5.5% | Strong | Strong population growth supports rents |
| Adelaide | 4.2–5.2% | Strong | Undersupply driving rent growth |
| Perth | 4.5–5.5% | Strong | Mining sector supports demand |
| Hobart | 3.8–4.8% | Moderate | Tourism effects on rental market |
| Darwin | 5.5–7.0% | Variable | High yields but volatility risk |
Negative gearing — when costs exceed rental income
What is negative gearing?
A property is negatively geared when the rental income is less than the interest payments and deductible expenses. The loss can be offset against other income, reducing your taxable income — and therefore your income tax.
Tax benefit calculation
If your investment property produces a $10,000 net loss and your marginal tax rate is 37%, the tax saving is $3,700 — effectively reducing the out-of-pocket cost to $6,300. However, negative gearing only makes financial sense if capital growth exceeds the after-tax annual loss.
Risk
Negative gearing relies on capital growth to produce an overall profit. A property that neither grows in value nor generates positive cash flow is a poor investment regardless of the tax concession.
Positive gearing — when rental income exceeds costs
What is positive gearing?
A property is positively geared when rental income exceeds all costs including mortgage interest. The surplus is assessable income and taxed at your marginal rate. Positive gearing generates immediate cash flow.
Where to find positive cash flow
Positively geared properties are more common in regional areas, higher-yield cities (Brisbane, Adelaide, Perth), and older established markets where prices have not escalated as rapidly as rents. Dual-occupancy properties, multi-unit investments, and commercial property often produce stronger cash flows.
❓ Frequently asked Frequently asked questions
What is a good rental yield in Australia?
A 'good' yield depends on your investment goal. In Sydney, 3–4% gross is typical. In Brisbane and Adelaide, 4–5.5% is achievable. Investors focused on capital growth accept lower yields; those focused on income target higher yields, often in regional or higher-yield markets.
What is the difference between gross and net yield?
Gross yield uses raw rental income. Net yield deducts ongoing costs (management fees, council rates, insurance, maintenance). A 4.5% gross yield may be only 2.5–3% net after costs. Use net yield for genuine return comparisons.
Does negative gearing make property investing worthwhile?
Negative gearing reduces your tax bill if you make a loss. But the underlying investment must produce capital growth to be profitable — negative gearing alone does not make a poor investment good. The tax saving only partially offsets the cash loss.
How does rental yield affect borrowing capacity?
Lenders count rental income at 80% of gross rent when assessing your borrowing capacity. A $26,000 gross rent becomes $20,800 in assessable income. If costs exceed rental income (negative gearing), the shortfall is treated as a monthly commitment reducing your maximum loan.
Where these figures come from
Property and mortgage figures on this page are drawn from the Reserve Bank of Australia (rate data), APRA (serviceability and lending rules), the ATO (CGT and rental rules), and State Revenue Offices (stamp duty).
- Mortgage & variable-rate data — RBA — Lenders' Interest Rates (F6).
- Lending serviceability buffer (3%) — APRA — Prudential Practice Guide APG 223.
- Capital gains tax & main residence — ATO — Capital gains tax.
- Negative gearing & rental income — ATO — Rental properties.
- Stamp duty (NSW example) — Revenue NSW — Transfer duty.
- First Home Owner Grant schemes — FirstHome.gov.au.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.