Rental Yield Calculator Australia

In Australia, rental yield is a critical metric for property investors — but understanding the difference between gross and net yield is essential. Gross yields look attractive; net yields after all costs are more modest.

Australian capital city residential properties typically yield 3–5% gross. Regional areas and higher-density properties (units, apartments) often yield 5–7% gross. The inverse relationship between capital growth and yield is real: cities with strong price growth (Sydney, Melbourne historically) tend to have lower yields.

Ownership costs in Australia that reduce gross to net yield include: property management (7–10% of rent + GST), council rates, water rates, building insurance, landlord insurance, strata levies (for apartments), maintenance and repairs, land tax (once you exceed the threshold), and vacancy allowance. A reasonable estimate is that ownership costs consume 3–5% of rent in a well-managed property.

For negative gearing calculations, the deductible loss (expenses exceeding income) is offset against your total income at your marginal tax rate. This can improve after-tax returns, but professional advice is essential — this calculator models pre-tax returns only.