Rental Yield Calculator

The Inputs of the Rental Yield Calculator Defined

Purchase Price

What you would pay to buy the property

Rent per Week

What you would charge the tenant per week to live in the property

Cash Deposit

The amount of cash/savings that are used to purchase the property.

Interest Rate

The cost the banks will charge you for lending you the money to secure the property.

Vacancy

The assumed number of weeks per year the property won't have a tenant.

The Outputs of the Rental Yield Calculator Defined

Gross Yield

The weekly rent x 52, and then divided by the purchase price of the property.

Net Yield

The actual rent achieved, minus the annual expenses, and then divided by the purchase price of the property.

Annual Rent

The weekly rent x (52- vacancy).

Annual Expenses

The estimated total costs of owning the property in the first year. These expenses include: the cost of the mortgage (interest-only), rates, insurance, accounting, professional property management and maintenance.

Annual Cashflow

The annual rent - annual expenses. It's the cash you would either receive or need to invest in owning the property.

Weekly Cashflow

The annual rent divided by 52.

Assumptions of the Rental Yield Calculator

Assumptions have been used to make this rental yield calculator as simple to use as possible. These assumptions derive from how we recommend property investors set up and manage their investments. The assumptions are:

• That if no cash deposit is used the property will be bought with 100% lending
• That the investment will be on an interest-only loan. The effect of this is that the mortgage repayments will be lower than if you were using a standard table loan/principal and interest loan
• That there will be $3500 worth of set up costs when purchasing the property. This would usually be $2250 in legal fees, $750 in ordering a valuation and $500 in accounting set up
• That insurance will cost 0.3% of the property's purchase price in the first year
• That council rates will be 0.48% of the property's purchase price in the first year
• That a professional property manager will be used and will charge 7%+gst (8.05%) to manage the property
• That maintenance will cost $500 in the first year
• That a professional account will be used and will charge $750+gst in the first year

Other Opes property investment calculators:

Equity and Leverage Calculator

Property Investment Calculator

Rental Yield Calculator

Mortgage calculator