Rental Yield Calculator Australia 2026: Capital City Comparison and Guide
Updated April 2026 · 10 min read
Rental Yields Across Australia in 2026
Rental yields vary dramatically between Australian capital cities. Darwin offers the highest gross yields at 6.5 percent while Sydney languishes at 3.0 percent. The difference comes down to property prices relative to rental income. Higher yields mean better cash flow but often come with lower capital growth expectations. Use our investment calculator to model your total return (yield plus growth).
Gross Yield vs Net Yield: The Real Numbers
Gross yield is the headline number but net yield is what matters. On a AUD 600,000 property yielding 5 percent gross (AUD 30,000 rent): deduct management fees (AUD 2,100), insurance (AUD 1,500), rates (AUD 2,000), maintenance (AUD 3,000), and vacancy (AUD 1,200). Net rent: AUD 20,200. Net yield: 3.4 percent. The gap between gross and net is typically 1.5 to 2 percentage points.
National vacancy rates sit at approximately 1 percent — historically tight. This supports rental growth and protects yields. Budget for 2 to 4 weeks vacancy per year when calculating net yield. Use our mortgage calculator (AUD) and savings calculator to plan your property investment strategy.
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Frequently Asked Questions
How do I calculate rental yield?
Gross yield: (annual rent / purchase price) x 100. Net yield: ((annual rent minus expenses) / purchase price) x 100. A property purchased for AUD 600,000 renting at AUD 600 per week: gross yield is (31,200 / 600,000) x 100 = 5.2 percent.
What is a good rental yield in Australia?
Gross yield above 5 percent is considered good. Net yield above 3.5 percent is strong. Sydney and Melbourne typically have low yields (3 to 4 percent gross) with higher capital growth. Darwin and Perth have higher yields (5 to 6.5 percent) with variable growth.
Why does Sydney have such low yields?
High property prices relative to rental income. A AUD 1.2 million Sydney apartment renting at AUD 700 per week yields only 3.0 percent gross. Investors accept low yields betting on capital growth.
Gross vs net yield: what is the difference?
Gross yield ignores expenses. Net yield deducts: management fees (5 to 8 percent of rent), insurance, council and water rates, maintenance (1 percent of property value), and vacancy (2 to 4 weeks per year). Net yield is typically 1.5 to 2 percent lower than gross.
Should I prioritize yield or capital growth?
Depends on your strategy. High yield provides immediate cash flow and suits those who need income. Capital growth builds wealth long-term. Most successful investors target a balance: reasonable yield (4 to 5 percent) in areas with solid growth fundamentals.