Free Australian Finance Calculators
Calculate gross and net rental yield including property management fees.
Gross Yield
5.41%
Net Yield
3.91%
Net yield excludes mortgage interest, depreciation and capital works. Consult a property accountant for full analysis.
Rental yield is a property’s yearly rent as a percentage of its value. There are two versions:
Worked example: a $700,000 property rented at $650 a week earns $650 × 52 = $33,800 a year.
Neither figure includes mortgage interest, capital growth or tax, so a property can have a healthy yield and still cost you money each week. To see the full picture, run the investment property cash flow calculator.
| Area | Gross yield (all dwellings) |
|---|---|
| Sydney | 3.4% |
| Melbourne | 4.1% |
| Brisbane | 3.5% |
| Adelaide | 3.6% |
| Perth | 4.0% |
| Hobart | 4.4% |
| Darwin | 6.5% |
| Canberra | 4.4% |
| Combined capitals | 3.7% |
| Combined regional | 4.3% |
Source: Cotality Home Value Index, results as at 30 September 2026. Yields for individual suburbs and property types vary widely from these averages.
It depends on the location. Cotality's Home Value Index put the gross rental yield for dwellings at 3.7% across the combined capitals and 4.3% across regional Australia at 30 September 2026, ranging from 3.4% in Sydney to 6.5% in Darwin. A yield above the local average usually means a lower-priced or higher-rent property, which can come with more risk. Net yield after expenses is always lower than gross yield.
Gross yield = (annual rent ÷ property value) × 100. It ignores all expenses. Net yield = ((annual rent − all expenses) ÷ property value) × 100. Expenses include council rates, strata/body corporate, insurance, repairs, property management fees and vacancy periods. Net yield is the more meaningful measure of actual return.
Fees are set by each agency and vary by state, property and level of service. Most charge an ongoing management fee as a percentage of the rent collected, and many add a letting fee when a new tenant is placed, plus lease renewal, advertising or administration fees. Ask for the full fee schedule before signing, then enter the management fee percentage in the calculator to see its effect on your net yield.
Yes. Rental income is assessable and taxed at your marginal rate, and expenses such as management fees, rates, insurance, loan interest and repairs are deductible against it. If expenses exceed rental income, the loss has traditionally been deductible against your other income (negative gearing). That changes from the 2027–28 income year under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026: for established residential properties acquired after 7:30 pm (ACT time) on 12 May 2026, the excess loss is quarantined. It can't be deducted against salary, but it can be applied against capital gains or carried forward. Properties acquired before that time and new residential dwellings keep full negative gearing.
Common deductible expenses include interest on the investment loan, property management fees, council and water rates, strata or body corporate fees, landlord insurance, repairs and maintenance, cleaning, gardening, pest control and advertising for tenants. Two common traps: since 1 July 2017, travel to inspect, maintain or collect rent for a residential rental property is not deductible for most individual investors, and you generally can't claim depreciation on second-hand fixtures and fittings (such as those already in a property you buy) unless they were bought before 9 May 2017 and installed before 1 July 2017. Capital improvements are not immediately deductible but may be claimed over time. See the ATO's rental expenses guidance for details.
Stamp Duty Calculator
Budget for upfront purchase costs before calculating yield.
Mortgage Calculator
Compare mortgage repayments against rental income.
Capital Gains Tax
Estimate CGT when you sell the investment property.
Income Tax Calculator
Rental income is taxed at your marginal rate — check your position.