Rental Yield Calculator - Australia
How do you calculate gross rental yield?
You take the sum of the annual rent you collect from the property.
Then divide the annual rent by the value of the property.
Multiply your result by 100 to convert it into a percentage.
The gross yield does not take into account the property fees or expenses. To do that you will need to work out the net rental yield.
How do you calculate net rental yield?
It’s much the same as calculating the gross rental yield but this time you will subtract a total of all the expenses from the annual rent collected from the property.
Expenses could be insurance, property management fees, council rates, strata or maintenance fees.
What is a good rental yield in Australia?
Typically the average rental yield for a home in Australia is 3.45% as of December 2021.
The average rental yield for a unit is a little higher at 3.96%.