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

Rental figures across weekly, monthly, and annual periods — and how vacancy affects your returns.

Weekly Rent
A$650/wk
Advertised rent
Monthly Rent
A$2,817/mo
Weekly x 52 / 12
Annual Rent (gross)
A$33,800/yr
Weekly x 52
Effective Annual Rent
A$32,448/yr
After 4.0% vacancy
Weekly Cash Flow
-A$519/wk
After all expenses and mortgage
Monthly Cash Flow
-A$2,251/mo
After all expenses and mortgage
Vacancy Scenarios
%
%
Best Case (1.0% vacancy)
-A$502/wk
-A$2,173/mo · -A$26,080/yr
Net yield: 2.31%
Base Case (4.0% vacancy)
-A$519/wk
-A$2,251/mo · -A$27,008/yr
Net yield: 2.19%
Worst Case (8.0% vacancy)
-A$543/wk
-A$2,354/mo · -A$28,245/yr
Net yield: 2.04%
%

Negative gearing allows rental losses (expenses exceeding income) to offset other taxable income, reducing your tax bill. This is a key feature of the Australian property investment landscape.

Rental Income
A$32,448
After vacancy
Deductible Expenses
A$15,358
Rates, insurance, management, maintenance
Mortgage Interest (est.)
A$37,200
First-year estimate — fully deductible
Taxable Rental Profit/Loss
-A$20,110
Loss offsets other income (negative gearing)
Annual Tax Saving
A$7,441
37.0% of rental loss — reduces your tax bill
After-Tax Monthly Cash Flow
-A$1,631/mo
After tax saving applied
Your property is negatively geared. The A$7,441 annual tax saving reduces your effective holding cost. This strategy works best when combined with expected capital growth.

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

Example: Perth Investment Property

3-Bedroom House in Fremantle, WA

Purchase Price$750,000
Weekly Rent$750
Annual Rent$39,000
Gross Yield5.20%
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 Yield3.20%
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.

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