Rental Yield Calculator

Rental Yield Calculator Invercargill

Use this calculator to compare a rental property’s estimated income with its purchase price and running costs. Enter the weekly rent and property value for a gross yield, then add expenses to estimate operating income and net yield. You can change the assumptions to see how a vacancy, higher costs or a different purchase price affects the figures.

Understanding the results

Enter an estimated weekly rent and purchase price in the calculator below to see an indicative gross rental yield. The basic formula is annual gross rent divided by purchase price, multiplied by 100. For example, $600 per week × 52 ÷ $650,000 × 100 = 4.8% gross yield.

The gross result does not subtract expenses. If you enter optional expenses, the tool also shows an estimated operating net income and net yield. It deducts the vacancy allowance from annual rent, applies the management-fee percentage to the remaining rent, then deducts the annual rates, insurance, maintenance and other costs you enter. These figures exclude lending costs, tax, transaction costs and any capital expenditure you have not included. “Monthly cash flow” is the estimated annual operating income divided by twelve; it is not your after-mortgage, after-tax cash flow.

A worked example

For example, $600 weekly rent gives $31,200 annual gross rent. At 2% vacancy and an 8% management fee, the estimated vacancy cost is $624 and the fee on the remaining rent is $2,446.08. Adding $3,000 rates, $1,800 insurance and $2,000 maintenance gives $21,329.92 operating income: about 3.28% of a $650,000 property value. These are illustrative assumptions, not our fees, a rental appraisal or a forecast.

Choosing your inputs

Enter a property value greater than zero, non-negative rent and costs, and percentages from 0 to 100. Include realistic expense and vacancy allowances when comparing scenarios.

A rental appraisal can help you estimate the rent for a particular home. Use your own quotes and costs for rates, insurance, management and maintenance, and allow for time between tenants. Compare more than one scenario rather than relying on full occupancy or the highest possible rent.

The calculator provides general estimates, not financial, tax, legal, insurance or investment advice. Our investment information guide covers broader ownership costs and professional advice. The landlord guide and healthy homes information explain everyday responsibilities.

Discuss the rental estimate

For an Invercargill or Southland property, request a rental appraisal or contact our property management team. Email rentals.invercargill.nz@raywhite.com or call 03 218 6117. Bring the address and the rent, price and cost figures you are considering.