Rental Yield Calculator

Rental yield is one way to compare the income produced by an investment property with its purchase price or current value. Use the calculator below as an initial estimate, then consider costs, vacancy, finance, tax and the condition of the property.

Understanding the result

Gross yield generally compares annual rent with the property value before expenses. It does not represent cash flow or investment return after rates, insurance, management, maintenance, compliance, vacancy, finance and tax.

Inputs and assumptions matter. A current rental appraisal can provide a more informed rent estimate for property in Kerikeri, Waipapa, Kaeo, Whangaroa, Okaihau or Waimate North.

This calculator is general information, not financial, tax or investment advice. Consider independent professional advice before making an investment decision.

A worked example with clear assumptions

This fictional example illustrates the arithmetic; it is not a Kerikeri rent appraisal or forecast. At a purchase price of $750,000 and rent of $650 a week for 52 paid weeks, annual rent would be $33,800. Gross yield would be $33,800 divided by $750,000, multiplied by 100: approximately 4.51%.

If only 50 weeks were paid, rent would be $32,500 and the same gross calculation would be approximately 4.33%. Neither figure deducts expenses. If annual operating costs were an illustrative $10,000, the second example would leave $22,500 before finance and tax, equivalent to 3.00% of the stated purchase price. These invented inputs do not establish likely costs or returns for your property.

Use consistent inputs

Keep the same value basis when comparing properties and state whether you are using the purchase price or a current value estimate. Allow separately for acquisition costs, initial work and major replacements. Check what the calculator includes before comparing its result with another calculation.

Prepare a property-specific budget for rates, insurance, management, vacancy, ordinary repairs, water or wastewater servicing, shared access and larger capital work. A positive yield percentage does not show whether rent covers your loan payments or whether an investment is suitable for you.

Request a property-specific rent discussion

Use the rental appraisal form below with the address, property details and intended availability. We can discuss market rent assumptions; your accountant, lender and other advisers can assess the wider costs, tax and financing position.