Rental Yield Calculator

Gross and Net Rental Yield

Gross rental yield is annual rent divided by property value, multiplied by 100. Net rental yield deducts annual operating expenses from rent before dividing by value. NAB's rental-yield guide explains both formulas.

For the residential example, $500 weekly rent produces $26,000 over 52 weeks on a $500,000 property. Potential gross yield is 5.2%. Two vacant weeks reduce annual rent to $25,000 and gross yield after vacancy to 5%. After $5,000 operating costs, net yield before finance is 4%.

The commercial example uses an $800,000 value and $4,000 monthly rent. With no vacancy and $8,000 owner-paid operating costs, gross yield is 6% and net yield is 5%. Both examples are hypothetical. Enter commercial rent and costs excluding GST, and omit outgoings recovered directly from the tenant.

Vacancy, Expenses and Mortgage Costs

Weekly rent is multiplied by 52, fortnightly rent by 26 and monthly rent by 12. Vacancy reduces potential annual rent by vacant weeks divided by 52. This forecast convention keeps payment frequencies comparable.

Operating expenses include only the total you enter. Add rates, insurance, property management, repairs, strata and other ongoing costs paid by the owner. Purchase costs, capital works, depreciation and tax are excluded.

Mortgage payments are deducted separately to calculate cash flow. In the residential example, $25,000 rent less $5,000 operating costs and $24,000 mortgage payments leaves a $4,000 annual shortfall. Principal repayments affect cash flow but do not reduce this tool's net yield. Every result is before tax.

Comparing Properties

Compare both properties using current values assessed on the same date, or both purchase prices. The shared value-basis fields record this choice. Changing those fields does not obtain a valuation or alter your entered values.

Use the same annual rent period and expense categories for both properties. A higher gross yield can fall below another property's net yield when vacancy and owner-paid costs rise. Match Property B's period to the ledger when Property A uses recorded annual rent.

Requesting a Rental Appraisal

The editable request asks a property agent to confirm expected rent for the named property and period. Enter the property's address and the period, then update the request. Edit it before copying it into your message.

The agent supplies the appraisal and its supporting basis. This calculator's request and your forecast are separate from an agent's rental appraisal.

Rental Ledger Template and Recorded Rent

The blank rental ledger lists expected payment periods without adding receipts. Enter each supplied payment's due date, received date and amount to reconcile it. Export the blank template or the completed worksheet as CSV.

Payments match the due date you enter. A short payment leaves unpaid rent. An unknown due date, a receipt outside the reporting period or an excess amount is flagged for review. Split a receipt across its correct due dates when it covers several periods.

Monthly schedules retain the starting day where the month allows it. A final partial period is prorated by its actual days. Weekly schedules use seven-day periods and fortnightly schedules use fourteen days. Weekends and holidays do not move due dates.

To use recorded rent in Property A, enter exactly 12 months and resolve every unmatched amount. Name the landlord or agent and confirm they verified the complete record. The calculator transfers matched receipts without annualising a shorter period or deducting vacancy again.

The worksheet is prepared from your entries. It is not independent rental history or proof of payment. Ask the landlord or agent to verify the receipts and unpaid periods against their records before supplying it to a lender.