Rental Yield & Investment Property Calculator

Gross rental yield is the annual rent as a percentage of the property's price: (annual rent ÷ price) × 100. A $650,000 property rented at $550 a week earns $28,600 a year, a gross yield of 4.4%. Net yield subtracts the costs of holding the property, such as council rates, strata, insurance, maintenance and property management: with $6,500 of annual expenses the net income is $22,100, or a net yield of 3.4%. Net yield is the more honest measure because it reflects what you actually keep. Compare yield together with expected capital growth, vacancy periods and interest costs before you decide, because a high yield alone does not make a good investment.