Gross to Net Yield Calculator

Real estate agents quote gross yield. Investors deal in net yield. This tool strips away the illusion of topline revenue to reveal the actual return on your asset after operating expenses.

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This calculator requires JavaScript. However, the core concept is simple: Net Yield = ((Annual Rent - Annual Operating Expenses) / Property Value) * 100.

Operating expenses must include: Management fees (7-10%), maintenance (1-2% of property value), insurance, property taxes, and a vacancy allowance (typically 5-8%). Failing to account for these turns a "7% gross yield" into a 3% net yield.

Inputs

Property Value ($) Weekly Rent ($) Management Fee (%) Annual Council/Property Tax ($) Annual Insurance ($) Annual Maintenance/Strata ($) Vacancy Allowance (Weeks/Year)

Results

Gross Yield --

Net Yield --

Total Annual Expenses --

Why Gross Yield is Dangerous

Quoting a gross yield implies that rent is pure profit. It systematically ignores the structural costs of holding an asset. If you buy a commercial asset at an 8% gross yield, you might net 6%. If you buy an older residential unit at an 8% gross yield, strata fees and maintenance might drag your net yield down to 3%.

For more detailed analysis on structural asset valuation, see our guide on Commercial vs Residential Property or explore Leverage Mechanics to see how debt impacts this net yield.