The two formulas
Gross rental yield = (annual rent ÷ property value) × 100
Net rental yield = ((annual rent − annual expenses) ÷ property value) × 100
Worked example
Property: $700,000 in Brisbane. Rent: $600/week ($31,200/year).
- Gross yield: $31,200 ÷ $700,000 = 4.46%
- Annual expenses: ~$10,400 (council rates $2,400, insurance $1,800, management 8% $2,500, maintenance $1,500, water $1,000, land tax $1,200)
- Net yield: $20,800 ÷ $700,000 = 2.97%
What to include in "expenses" for net yield
- Council rates + water access
- Landlord insurance + building insurance
- Property management fees + letting fee (amortised)
- Repairs and maintenance (allow 1% of value/year)
- Body corporate/strata (if applicable)
- Land tax (state-dependent)
- Vacancy allowance (typically 2–4% of rent)
Do not include interest (that's a financing decision, not a property yield decision) or depreciation (that's a tax item). To layer interest and depreciation on top of net yield and see the after-tax cashflow, run the property through the negative gearing calculator.
Capital city gross yields — 2026 snapshot
| City | Gross yield (houses) | Gross yield (units) |
|---|---|---|
| Sydney | 2.9% | 4.4% |
| Melbourne | 3.2% | 4.7% |
| Brisbane | 4.0% | 5.4% |
| Adelaide | 3.9% | 5.6% |
| Perth | 4.3% | 5.8% |
| Hobart | 4.1% | 5.2% |
| Darwin | 6.1% | 7.4% |
| Canberra | 3.9% | 5.4% |
Track yield automatically
PropAlly's Investor module calculates gross and net yield on every property in your portfolio using your actual expense data — updated every time a new rental statement is filed. To go one step further and see the after-tax cashflow (yield minus interest, plus depreciation and the tax offset), run the numbers through the negative gearing calculator.