Most yield calculators only do gross. We give you gross, net (after holding costs), and cash-on-cash return (after vacancy + management). That's the number that actually lands in your bank account.
Rental yield is the rental income a property generates each year, expressed as a percentage of its value. It's the simplest measure of an investment property's cashflow performance — and the one most agents quote because it's the easiest number to make sound impressive.
The problem is that "yield" can mean three different things depending on what costs you subtract. Our calculator above shows all three so you see the full picture, not just the headline.
Annual rent ÷ purchase price. This is what real estate agents quote in marketing. A $600,000 property renting at $580/week generates $30,160/year in rent — gross yield 5.03%. It ignores every cost of holding the property, so it always overstates the actual return.
Gross rent minus council rates, water, insurance, and a maintenance allowance (typically 0.5% of price per year). Doesn't include loan interest or tax. This is the number you'd see if you owned the property outright in cash.
Net yield AFTER subtracting vacancy allowance (typically 1.5–2.5% nationally) and property management fees (6–9% of rent). This is the actual income that lands in your bank account each year before tax.
A yield over 7% often signals trouble: low buyer demand keeping prices down, a structural issue with the suburb (mining-town volatility, public-housing concentration), or pricing reflecting genuine vacancy risk. High yield should be checked against vacancy rate, demand depth, and 5-year capital growth history.