Yield on Property Calculator

What is a Yield on Property Calculator?

A Yield on Property Calculator is a tool that measures how much return you’re earning from a rental property compared to its purchase price.

It gives you two important numbers:

1. Gross Rental Yield – Income before costs.
2. Net Rental Yield – Income after costs like maintenance, insurance, and management fees.

This simple calculation helps investors:

• Compare different properties.
• Understand profitability before buying.
• Avoid costly investment mistakes.

Why Does Property Yield Matter?

Yield is one of the most reliable indicators of investment performance. It shows how much rental income your property generates relative to its value.

• A higher yield means better cash flow.
• A lower yield could signal an overpriced property or high running costs.

For example:

• City apartments may have lower yields but higher long-term capital growth.
• Regional homes may offer higher yields but slower price growth.

Understanding yield helps you balance income vs. growth, depending on your investment goals.

How Does the Calculator Work?

The calculator uses straightforward formulas:

1. Gross Rental Yield Formula

Gross Yield=Annual RentPurchase Price×100\text{Gross Yield} = \frac{\text{Annual Rent}}{\text{Purchase Price}} \times 100

2. Net Rental Yield Formula

Net Yield=Annual Rent – Annual CostsPurchase Price×100\text{Net Yield} = \frac{\text{Annual Rent – Annual Costs}}{\text{Purchase Price}} \times 100

Example:

• Purchase Price = $500,000
• Annual Rent = $36,000
• Annual Costs = $8,000
• Gross Yield = (36,000 ÷ 500,000) × 100 = 7.2%
• Net Yield = ((36,000 – 8,000) ÷ 500,000) × 100 = 5.6%

This quick calculation shows that while the property looks attractive at 7.2% gross yield, the real return after costs is only 5.6%.

Features of This Yield on Property Calculator

The code you provided powers a modern, interactive calculator with:

Custom Inputs – Enter purchase price, annual rent, and costs.
Instant Results – Shows both gross and net yield.
Reset Function – Start again with one click.
Clear Design – Easy-to-read results in percentage format.

It’s built to work smoothly on desktop and mobile, so you can calculate yields anytime, anywhere.

When to Use the Yield on Property Calculator

This tool is useful for:

• First-time investors → To compare potential properties.
• Experienced landlords → To track ongoing portfolio performance.
• Financial planning → To check if rental income covers mortgage repayments.
• Market comparison → To see how one suburb stacks up against another.

In short, if you’re thinking of buying, renting out, or analyzing property, this calculator should be your first stop.

How to Use the Calculator (Step-by-Step)

1. Enter the purchase price of the property.
2. Add the annual rental income (weekly rent × 52).
3. Input the annual operating costs (rates, insurance, repairs, etc.).
4. Click Calculate.
5. View your gross yield and net yield instantly.

Tip: Always compare net yield, not just gross yield. It gives a more realistic picture of actual returns.

Important Disclaimer

This calculator provides an estimation only. Property yield is just one part of the bigger investment picture. Factors like capital growth, taxes, financing costs, and market conditions must also be considered.

Always seek professional financial advice before making property investment decisions.