Your property details
Property & income
Annual expenses
Finance (optional)
Gross yield
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per year
Net yield
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after expenses
Annual rental income
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after vacancy
Cash flow
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per week
Full income & expense breakdown
Gross annual rent—
Less: vacancy allowance—
Effective annual rent—
Council rates—
Property management—
Insurance—
Maintenance—
Water rates—
Other expenses—
Mortgage interest—
Net annual income—
Investment property tips for Australians
What is a good rental yield?
In Australia, a gross yield of 4-5% is considered average. Above 5% is good, above 6% is excellent for capital city properties. Regional areas often yield 6-8% but with lower capital growth.
Yield vs capital growth
High yield and high capital growth rarely come together. Sydney and Melbourne offer lower yields (3-4%) but historically strong capital growth. Regional areas offer higher yields but less predictable growth.
Negative gearing
If your expenses exceed rental income you're negatively geared. In Australia this loss can be offset against other income, reducing your tax bill. Many investors deliberately negatively gear for the tax benefits plus capital growth.
Property management fees
Typical property management fees in Australia are 7-12% of weekly rent plus letting fees. Shop around — a 1% difference on a $500/week property saves $260/year. Always compare what's included.
Don't forget buying costs
Stamp duty, legal fees, building inspections and loan establishment costs can add 5-6% to your purchase price. Factor these into your yield calculation for a true picture of your investment returns.
Depreciation benefits
New properties allow you to depreciate the building structure and fittings, creating a non-cash tax deduction. A quantity surveyor's depreciation report ($500-700) can save thousands in tax annually.
Frequently asked questions
What is rental yield and how is it calculated?
Rental yield is the annual return on your property investment expressed as a percentage of the property value. Gross yield = (annual rent ÷ property value) × 100. Net yield subtracts all expenses before calculating the percentage, giving you a more accurate picture of your real return.
What is a good rental yield in Australia in 2025?
In Australian capital cities, a gross yield of 4-5% is average. Above 5% gross (or 3.5% net) is considered a solid investment. Regional areas often achieve 6-8% gross yield but typically offer less capital growth than capital cities.
What is negative gearing?
Negative gearing occurs when your investment property's expenses (including mortgage interest) exceed your rental income. In Australia, this net loss can be offset against your other income (such as salary), reducing your total taxable income and therefore your tax bill. Many Australian investors use this strategy deliberately when expecting strong capital growth.
Should I include mortgage repayments in my yield calculation?
This calculator uses interest-only costs (not principal repayments) for the net yield calculation, which is the standard approach for investment property analysis. Principal repayments build equity rather than being a true expense, so including them would understate your yield.
Is this calculator accurate for all Australian states?
The yield calculations apply Australia-wide. The state selector helps contextualise your results as typical yields and property management costs vary by state. Always verify local rates and fees with a local property manager or buyer's agent.