Australian Rental Yield Calculator
Calculate gross yield, net yield, and weekly cash flow for Australian investment properties. Includes stamp duty, strata fees, council rates, and landlord insurance. AUD.
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% p.a.
yrs
Weekly Cash Flow
-A$519/wk
Annual: -A$27,008 · Monthly: -A$2,251
Gross Yield
4.51%
Net Yield (on total cost)
2.19%
Cash-on-Cash Return
-15.09%
Annual Rent (effective)
A$32,448
Annual Expenses
A$15,358
Net Operating Income
A$17,090
Weekly Rent
A$650/wk
Annual Mortgage
A$44,098
How to Use the Australian Rental Yield Calculator
Enter the Property Value and Weekly Rent (Australian rent is traditionally quoted weekly). Add your acquisition costs (stamp duty) and annual holding costs. The calculator converts everything to annual figures, calculates gross and net yield, and shows weekly and monthly cash flow after mortgage repayments.
Key Formulas
Annual Rent = Weekly Rent × 52
Effective Rent = Annual Rent × (1 - Vacancy Rate)
Gross Yield = Annual Rent / Property Value × 100
Annual Expenses = Council Rates + Strata + Insurance + Maintenance + Management
NOI = Effective Rent - Expenses
Net Yield = NOI / (Property Value + Stamp Duty) × 100
Annual Cash Flow = NOI - Annual Mortgage Repayments
Weekly Cash Flow = Annual Cash Flow / 52
Effective Rent = Annual Rent × (1 - Vacancy Rate)
Gross Yield = Annual Rent / Property Value × 100
Annual Expenses = Council Rates + Strata + Insurance + Maintenance + Management
NOI = Effective Rent - Expenses
Net Yield = NOI / (Property Value + Stamp Duty) × 100
Annual Cash Flow = NOI - Annual Mortgage Repayments
Weekly Cash Flow = Annual Cash Flow / 52
Example: Perth Investment Property
3-Bedroom House in Fremantle, WA
| Purchase Price | $750,000 |
| Weekly Rent | $750 |
| Annual Rent | $39,000 |
| Gross Yield | 5.20% |
| Council Rates | $2,200/yr |
| Landlord Insurance | $2,000/yr |
| Maintenance (0.75%) | $5,625/yr |
| Management (8.5%) | $3,172/yr |
| Net Operating Income | $25,000/yr |
| Net Yield | 3.20% |
| Mortgage P&I (20% down, 6.20%) | $37,230/yr |
| Annual Cash Flow | -$12,230 (negative gearing) |
| Weekly Cash Flow | -$235/week |
This property is negatively geared — the shortfall is $235/week. However, the tax deduction on the negative gearing (interest component + depreciation + expenses) reduces the after-tax cost significantly for investors in higher tax brackets.
Frequently Asked Questions
Negative gearing occurs when your rental income is less than your expenses (including mortgage interest). The loss can be offset against your other income (salary, etc.), reducing your tax bill. For example, if you're in the 37% bracket and have a $15,000 annual rental loss, you save ~$5,550 in tax. Investors bet that capital growth will outpace the after-tax cost of carrying a negatively geared property.
Gross yields vary significantly by location: Sydney/Melbourne: 2.5–3.5% (low yields, high capital growth history). Brisbane/Perth: 3.5–5% (better yields). Adelaide/Hobart: 4–5.5%. Regional cities: 5–8%. A net yield above 4% generally indicates a positively geared or near-neutral property in Australian markets. Consider both yield and capital growth potential when evaluating investments.
Deductible expenses include: mortgage interest (not principal), council rates, strata fees, landlord insurance, property management fees, maintenance and repairs, advertising for tenants, accounting fees, travel to inspect the property (limited), and building depreciation. Capital improvements must be depreciated over time, not claimed immediately. Keep all receipts and records.