4.5%
Australia
Rental yield calculator Australia — gross vs net yield
Gross yield is the listing. Net yield is after strata, rates and land tax.
Gross rental yield — a year's rent divided by the price — is the number in every listing. Net yield takes off vacancy, property management and the running costs landlords actually pay: council and water rates, strata levies, insurance, repairs and land tax. This calculator shows both, then points you to the after-tax figures that the 2027 negative gearing changes have made more important than ever.
Net yield 3.3%, not the 4.5% on the listing
Voids, management and running costs take $8,809 a year before any mortgage or tax.
3.3%
$24,991
| Year 1 | Amount |
|---|---|
| Rent (full year) | $33,800 |
| Less voids / vacancy | -$1,014 |
| Less management | -$2,295 |
| Less running costs | -$5,500 |
| Net operating income | $24,991 |
Worked example
A $750,000 property rented at $650 a week earns $33,800 a year: a gross yield of 4.5%.
With 3% vacancy, rent collected is $32,786. A 7% property manager costs $2,295, and rates, strata, insurance, land tax and repairs of $5,500 follow. Net operating income is $24,991 — a net yield of 3.3%.
If the net yield is below your mortgage rate, the property is negatively geared from day one. From 1 July 2027 whether that loss reduces your tax depends on when and what you bought — see the negative gearing comparison.
Gross vs net yield
Gross yield = annual rent ÷ price. Net yield = (rent collected − management − running costs) ÷ price. Neither includes interest, depreciation or tax, and neither includes stamp duty, which is part of the cash you invest and is counted in the cash flow calculator.
Costs that are easy to underestimate
- Land tax. It is charged by each state and territory on investment land above a threshold and is an annual cost owner-occupiers usually don't pay.
- Strata levies, including special levies for major works in apartment buildings.
- Letting fees and advertising charged separately from the management percentage.
- Repairs and maintenance, which rise with the age of the building.
What this calculator does not include
Yield leaves out the loan, tax, stamp duty, capital growth and selling costs. The cash flow calculator includes all of them.
Questions landlords ask
Is rental yield calculated on weekly or annual rent?
Annual. Multiply weekly rent by 52 and divide by the price.
Should land tax be included in net yield?
Yes, if you pay it on the property. It is an operating cost of owning an investment.
Does gross yield include stamp duty?
No. Stamp duty is part of the cash you put in, so it belongs in cash-on-cash and IRR, not in yield.
Tax rules: AU registry v1.0.0, last reviewed 2026-09-30. Figures in the text use the default inputs above. Sources and method.