Rental yield calculator
Gross yield is a year of rent as a share of the purchase price. Both figures are yours, and the step from a weekly rent to a yearly one is on the page.
$700,000
$600 a week
$31,200 a year
Gross yield
4.46%
A year of rent
$600 × 52 = $31,200
That rent against the price
$31,200 of $700,000 is 4.46%
An estimate from the two figures above, not a figure for any particular property. Gross yield is rent against price and nothing else, so it leaves out council rates, insurance, body corporate fees, management fees, maintenance, vacancy between tenants and the loan itself, and it takes no account of your own tax position. It is not financial advice. Nothing here is saved or sent.
Disclaimer: This tool returns an estimate. It is arithmetic on the figures you type and nothing else. It saves nothing, sends nothing to us and reaches no lender. The result is not a quote, not an approval and not an offer of credit, and it takes no account of your objectives, your financial situation or your needs. Top Sellers Realty holds no Australian financial services licence and no Australian credit licence. We give no financial product advice and no credit assistance. Before you act on a figure from this page, talk to a licensed broker or credit provider about the loan, to your accountant about tax, and to a licensed financial adviser about the investment.
How to read a yield figure
It is rent against price
A year of rent stated as a percentage of what the property costs you. Two homes renting for the same amount show different yields the moment their prices differ, which is why the figure moves when you change either slider.
The rent is weekly, the yield is annual
Rent in Queensland is quoted by the week and yield by the year, so the weekly figure is multiplied by 52 before anything is divided. Without that step the answer is out by a factor of 52.
What a gross figure leaves out
Council rates, insurance, body corporate fees, management fees, maintenance, vacancy between tenants and the loan itself all sit outside it, and so does your own tax position. A net figure is a different sum, built from costs only you and your accountant can put numbers to.
The listings that publish an advertised gross yield run from 2.31% to 8.48%. Each one is the figure quoted for that property, not a market average.
Both figures here are yours to set. A question about a real property goes to the office.
Frequently asked questions
The number
What is gross rental yield?
A year of rent stated as a percentage of the purchase price. The weekly rent is multiplied by 52, then divided by what the property costs, which is the sum running in the panel above.
Why multiply the rent by 52?
Rent is advertised by the week here and yield is always stated by the year, so the two figures have to be put on the same footing before the division. That conversion is the step people miss.
Does a high gross yield mean a better investment?
Not on its own. Gross yield compares rent to price and nothing else, so it says nothing about running costs, the condition of the property, or your own tax position. Your accountant or financial adviser is the right person for that part.
Using the figure
Should I use the purchase price or the current value?
Whichever question you are asking. The price you paid gives the yield on your original outlay; today's value gives the yield on what the property is worth now. The sum is the same either way.
Where does the yield figure on a listing come from?
It is the figure quoted for that property by whoever is selling it, shown as it was given to us. It is an advertised gross figure, not a promise of what a tenant will pay, so treat it the same way as the number above.
What people say
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