Rental Yield Calculator
Get your forecast in 4 steps:
- Set the Price: Input the purchase price and loan percentage to reveal your required deposit.
- Add Expenses: Include stamp duty, solicitor fees, and other purchasing costs to see your total cash requirement.
- Define Terms: Enter your net income, projected rental increases, interest rate, and how long you plan to hold the property.
- Refine Strategy: Choose whether to use profits to pay down debt, and specify what percentage of profit you want to withhold for personal use.
Questions? Contact our team today for a detailed walkthrough.
Results
Key Considerations for Rental Yield
When evaluating an investment property, looking beyond the gross yield is essential. To accurately assess whether an asset will cover its ongoing expenses, we recommend calculating the net rental yield. This provides a realistic projection of your actual return on investment after costs.
Understanding Negative Gearing: A high property value does not guarantee high rental returns. In many cases, premium properties generate lower percentage yields, resulting in rental income that fails to cover mortgage repayments and maintenance costs. This financial position is known as negative gearing.
The Tax Advantage: While operating at a loss may seem counterintuitive, negative gearing offers distinct tax advantages. Under current regulations, the net loss incurred from the property can often be offset against your other taxable income (such as your salary). This effectively reduces your total taxable income and, subsequently, your tax liability.
Interested in Investing?
With the opportunity to grow your wealth, property can be an attractive investment. There are few things to consider however, and that’s where we come in. For more information on how to start your property investment journey, please call us to learn more.
What We Do
01
Initial Consultation & Engagement
02
Property Sourcing & Shortlisting
03
Due Diligence & Negotiation
04
Purchase & Ongoing Property Management
approx. of what we purchase is off-market
4-6 weeks
is our average purchase time
11-13% savings
off the asking price is what we achieve for our clients on average
approx. of what we purchase is off market
4-6 weeks
is our average purchase time
11-13% savings
off the asking price is what we achieve for our clients on average
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FAQs
What’s the difference between gross rental yield and net rental yield?
Gross rental yield only considers income versus property value. Net rental yield goes further by subtracting expenses like insurance, rates and maintenance, providing a clearer view of actual returns.
What factors can affect my rental yield over time?
Rental yield can shift with changes in tenant demand, interest rates, property condition and broader economic trends. Regularly reviewing your portfolio helps you stay ahead of these changes.
How does the rental yield calculator work?
The calculator divides the annual rental income by the property’s value to produce a yield percentage. This simple calculation helps you quickly compare different opportunities without needing to crunch the numbers manually.
Can I use the calculator for both residential and commercial properties?
Yes. The rental yield calculator works for both residential and commercial assets. Just remember that costs and returns can differ significantly between the two, so context is key.
How accurate is the rental yield estimate from this calculator?
The estimate is reliable based on the figures you provide, but it doesn’t account for every factor, such as vacancies or unexpected expenses. Use it as a guide and follow up with professional advice for precise planning.
Can the calculator help compare different property investments?
Yes. By entering figures for multiple properties, you can compare yields side by side. This makes it easier to identify which opportunities are best aligned with your goals.