Rental Yield Calculator

Rental yield is one way to compare the rental income of a property with its value or purchase price. Use the calculator below to estimate gross yield, then consider the costs and circumstances that affect the property’s actual return.

How gross rental yield is calculated

Gross rental yield is generally calculated by multiplying the weekly rent by 52, dividing that annual rent by the property value or purchase price, and converting the result to a percentage.

For example, a property earning $600 per week produces annual gross rent of $31,200. If its value is $800,000, the estimated gross yield is 3.9%.

What gross yield does not include

Gross yield does not account for rates, insurance, management fees, maintenance, vacancy, financing, tax, compliance work or capital improvements. Coastal properties may also have different maintenance requirements. Yield should therefore be considered alongside condition, long-term costs, tenant demand and your financial objectives.

Use a realistic rental estimate

The result is only as useful as the rent entered. Request a local rental appraisal if you need current guidance for a property in Russell or Okiato.

Use the optional expenses for a fuller comparison

The native calculator below can also estimate a net return before lending costs and tax. Enter the annual rates, insurance, maintenance and other costs, together with the management fee and vacancy allowance percentages. It uses 52 weeks of rent; a vacancy allowance reduces income available for the net estimate, and the management fee is applied to rent after that allowance.

For illustration only, an $800,000 property renting for $600 a week has gross annual rent of $31,200 and a 3.90% gross yield. With an 8% management fee, 2% vacancy allowance, $3,000 annual rates, $1,500 insurance and $1,000 maintenance, the calculator estimates expenses of about $8,570 and net annual income of about $22,630, a 2.83% net yield. These are fictional inputs, not a Russell market appraisal or a fee quote.

The monthly cash flow label represents the model’s net annual income divided by 12. It is not the amount left after mortgage payments or tax. Check which costs are included in your own quotes and budget for major work separately. Zero property value or invalid rent will not produce a usable yield; enter realistic figures to compare scenarios.