Australia Rental Yield Calculator 2026-27

How are gross and net yield calculated?

Gross yield is annual rent divided by the purchase price. Annual rent is the weekly rent multiplied by 52. Net yield subtracts the running expenses you enter from the annual rent before dividing by the price. For the default inputs ($600,000 price, $550 a week, $8,000 expenses) rent is $28,600, gross yield is 4.77% and net yield is 3.43%. Neither figure includes mortgage interest, purchase costs or vacancy.

What does the cash flow line include?

It subtracts both the expenses and the mortgage interest from annual rent. With $8,000 of expenses and $30,000 of interest against $28,600 of rent, the result is minus $9,400. A positive result means the rent covers those costs. Principal repayments are not included, so the real cash leaving your account can be higher than the line shows.

How does the tool calculate the tax effect when the property is negatively geared?

If cash flow is negative, the tool multiplies the loss by the marginal rate you picked and shows that as a saving. On a $9,400 loss at 30% the saving is $2,820 and the after-tax cash flow is minus $6,580. The tool assumes the loss is fully deductible and is set against other income taxed at exactly that rate; it does not model depreciation, deduction limits or the levy that sits on top of the marginal rate.

What happens when the property is positively geared?

The tool charges tax on the profit at your chosen rate and subtracts it. On a $400,000 property let at $600 a week with $6,000 of expenses and $12,000 of interest at 37%, the profit is $13,200, tax is $4,884 and the after-tax result is $8,316. With the same $600,000 property and no mortgage interest, the cash flow of $20,600 produces $6,180 of tax and $14,420 after tax.

Why are there only four marginal rate choices?

The list holds 15%, 30%, 37% and 45%, each with an income range in its label, labelled 2026-27. They are the options built into this tool and they do not include the Medicare levy or any offset. Australian rules change each 1 July, the tool’s tables are not updated automatically, and the ATO or a registered tax agent governs which rate applies to you.

What is left out of the yield and return figures?

Capital growth, depreciation, vacancy, letting fees at purchase, stamp duty, land tax, capital gains tax on sale, loan costs and interest rate changes are not modelled. Rent and expenses are held at the amounts you type, and the tool does not escalate rent or costs over time. The yield is a single-year snapshot at the inputs you enter.

What do I do with blank or zero values?

Clearing a box counts as 0, and a price or rent of 0 gives a yield of zero rather than an error. An expense or interest figure of 0 is taken as entered. If the price is 0 both yield lines show 0.00%. A blank marginal rate falls back to 30%, but the form always supplies one, so in normal use the choice you make drives the tax line.