Rental Yield Calculator
Enter purchase price, weekly rent, expenses, and mortgage terms to see gross yield, net yield, annual cashflow, and DSCR. All calculations run in your browser, nothing is saved.
Last reviewed: April 2026
Gross Yield
9.24%
$55,432 annual rent / $600,000
Net Yield (after expenses)
7.74%
After $9,000 operating expenses
Annual Cashflow (pre-tax)
+$17,632
Net income minus $28,800 mortgage interest at 6% on $480,000 loan
DSCR
1.61
Property covers its own loan
How to read the results
- Gross yield
- Annual rent divided by property price. Simple, but ignores all expenses and loan costs. See gross yield definition.
- Net yield
- Gross yield minus operating expenses (rates, insurance, management, maintenance). Typically 1.5-2.5 points below gross yield in Australia. See net yield definition.
- Annual cashflow
- Net income after mortgage interest. Positive = the property pays itself. Negative = you're subsidising it. Does not account for tax effects (negative gearing, depreciation).
- DSCR
- Debt Service Coverage Ratio. Above 1.0 = rent covers the loan. Below 1.0 = top-up required. See DSCR definition.
Frequently asked questions
What is a good rental yield in Australia?+
A good gross rental yield in Australia sits between 4.5% and 6% at current interest rates. The national average is around 3.6%. Below 4% typically means negatively geared; above 6% usually signals either regional / high-risk stock or an underpriced opportunity.
What's the difference between gross yield and net yield?+
Gross yield divides annual rent by property price with no adjustments. Net yield subtracts operating expenses (rates, insurance, property management, maintenance, strata) before dividing. Net yield in Australia typically runs 1.5-2.5 percentage points below gross.
How do I calculate net rental yield?+
Net rental yield = ((Weekly rent x 52) minus annual operating expenses) / property price x 100. Include rates, insurance, property management fees (typically 5.8-8.7% of rent), maintenance (1-2% of property value), strata, and water. Mortgage interest is not included; it's part of cashflow, not yield.
What yield is needed for positive cashflow in 2026?+
At current 6% mortgage rates with a 20% deposit, a gross yield around 5.5% or higher is needed for the property to be cashflow positive after operating expenses and interest. Anything below 5.5% typically runs negatively geared.
Does the calculator include stamp duty and buying costs?+
No, rental yield is calculated on the purchase price only. Stamp duty, legal fees, and other acquisition costs are handled separately. Use our stamp duty calculator for those.
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