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Calculators

Links Property Finance · Free calculator from a Sydney mortgage broker: Rental Yield Calculator

Enter the price, the weekly rent and the yearly costs to see the gross and net rental yield, then compare it with the interest rate on the loan.

Reviewed by Charles Touma Updated 18 October 2026

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What would the property return?

Gross and net yield

Gross and net rental yield

An investment property calculator for gross and net yield: move the sliders to match the property. The yearly costs are everything you pay to own it, before the loan.

$950,000
$750
$9,000
  • Rent, per year$39,000/yr
  • Gross rental yield4.11%
  • Net rental yield3.16%

Compare the net yield with the interest rate on the loan: below it, the property costs you money each year, which is negative gearing.

Estimates only, before loan repayments and tax. Vacancy, rent changes and costs change the real return. Not financial or tax advice.

Confirm your numbers.

What rental yield does the property return?

Gross yield is the yearly rent as a percentage of the price; net yield takes off the costs of owning the property. Compare the net yield with the loan’s interest rate: below it, the property costs you money each year, which is negative gearing.

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Sydney yields are generally lower than regional ones because prices are high relative to rents.

Part of the investment property loans guide.

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  • How do lenders treat rental income?

    When you apply for an investment loan, lenders usually count only part of the expected rent, often around 70 to 80 per cent, to allow for vacancy and costs, and they want evidence such as a lease or a rental appraisal from an agent.

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How is rental yield calculated?

A brick house with a gabled roof
  • Gross yield is the yearly rent divided by the property’s value.Rent of $750 a week is $39,000 a year. On a $950,000 property, that is a gross yield of about 4.1 per cent.
  • Net yield takes the yearly costs off the rent first.Costs include council and water rates, strata levies, insurance, property management, repairs and maintenance. With $9,000 a year in costs, the same property’s net yield is about 3.2 per cent.

What is a good rental yield?

A row of red brick terraces
  • It depends on your strategy.A higher yield helps cash flow and borrowing power; a lower yield can be the trade-off for a property expected to grow more in value.
  • Compare the net yield with the interest rate on your loan.When the net yield is below the rate you pay, the property costs you money each year, which is negative gearing.
  • Allow for vacancy.A few vacant weeks a year reduce the real return, and lenders allow for it too by counting only part of the rent.

How do lenders treat rental income?

When you apply for an investment loan, lenders usually count only part of the expected rent, often around 70 to 80 per cent, to allow for vacancy and costs, and they want evidence such as a lease or a rental appraisal from an agent.

The more of the rent a lender counts, the more you can borrow, which is one reason lender choice matters for investors.

Common questions about rental yield

How do I calculate rental yield?

Multiply the weekly rent by 52 to get the yearly rent, divide it by the property’s price, then multiply by 100. That is the gross yield. For net yield, take the yearly costs off the rent before dividing.

What is the difference between gross and net rental yield?

Gross yield uses the rent alone. Net yield subtracts the costs of owning the property, such as rates, strata, insurance and management fees, so it is lower and closer to what you earn.

What is a good rental yield in Sydney?

There is no single number. Sydney yields tend to be lower than in many regional areas because prices are high compared with rents. Investors usually weigh yield against expected growth, the type of property and how the loan is structured.

Should net yield include mortgage interest?

Usually not. Net yield measures the property’s return before finance, so you can compare properties fairly. Comparing that figure with your interest rate then shows whether the property pays for itself.

Does rental yield affect how much I can borrow?

Yes. Lenders add part of the expected rent to your income when they assess the loan, so a higher rent supports a larger loan. Each lender shades the rent differently.

Running the full numbers? The ownership cost calculator totals the yearly costs, and the calculators page has the rest.

Check the estimate with a broker

Charles can show how a lender will count the rent, what you could borrow, and whether the numbers work alongside your other loans.

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Charles Touma, mortgage broker at Links Property Finance
Reviewed by Charles Touma Director & Mortgage Broker · MFAA member · Credit Representative 579003 under ACL 389328 About Charles · Investment loans

General information only, not financial, tax or credit advice. Results are estimates based on the figures you enter. Rents, costs and vacancy change, and lender treatment of rental income varies.

Official sources for the figures on this page: Revenue NSW, transfer duty. Scheme rules change; the official pages are the final word. Checked against these sources on 12 October 2026.