Rental Yield Calculator

Calculate rental yield, cash flow, and return on investment for your rental property. Analyze gross yield, net yield, and overall investment performance.

Property Details

Loan Details (Optional)

Investment Analysis

Enter property details to calculate rental yield

Rental Yield Benchmarks

Yield Classifications

Excellent: 8%+
High cash flow, strong returns
Good: 6-8%
Solid investment returns
Average: 4-6%
Moderate returns, growth potential
Low: Below 4%
Low cash flow, capital growth focus

Common Expenses

  • • Property management fees (6-10%)
  • • Insurance (0.5-1% of property value)
  • • Maintenance and repairs (1-2%)
  • • Council rates and taxes
  • • Strata fees (if applicable)
  • • Vacancy allowance (5-10%)
  • • Legal and accounting fees

How to Use This Calculator

Step-by-Step Guide

  1. 1. Enter the property purchase price
  2. 2. Input the expected weekly rental income
  3. 3. Add annual expenses (maintenance, insurance, etc.)
  4. 4. Include purchase costs (stamp duty, legal fees)
  5. 5. Enter loan details if financing the purchase
  6. 6. Click "Calculate" to see your investment analysis

Understanding Results

  • • Gross Yield: Rental income as % of property value
  • • Net Yield: Income after expenses as % of property value
  • • Cash Flow: Monthly profit/loss after all costs
  • • Cap Rate: Net operating income / property value
  • • Cash on Cash: Return on actual cash invested

Frequently Asked Questions

What's a good rental yield?

A good rental yield depends on location and market conditions. Generally, 6-8% is considered good, while 8%+ is excellent. However, properties in high-growth areas may have lower yields but higher capital appreciation potential.

Should I focus on yield or capital growth?

It depends on your investment strategy. High-yield properties provide immediate cash flow, while high-growth areas offer long-term capital appreciation. Many investors prefer a balanced approach with moderate yields and growth potential.

How do I improve rental yield?

You can improve yield by increasing rent (through renovations or market improvements), reducing expenses (better property management, maintenance), or purchasing at a lower price. Always ensure rent increases are market-justified.

What expenses should I include?

Include all ongoing costs: property management, insurance, maintenance, council rates, strata fees, vacancy allowance, and any other regular expenses. Don't forget one-time costs like legal fees and stamp duty in your purchase costs.