Rental Yield Calculator

Use this calculator to compare weekly rent with a property value, then explore how stated annual expenses affect an indicative net yield. For a Kaitaia or Far North home, start with a realistic rent estimate and the purchase price or current value you want to assess.

Enter your assumptions

Enter a property value greater than zero and a positive weekly rent. Use non-negative annual figures for rates, insurance, maintenance and other costs. Management and vacancy percentages should be between 0 and 100. Leave an optional expense blank only when you intend to model it as zero; a blank does not mean that an actual owner has no cost.

The current calculator clears results for a missing, zero or negative property value and for zero rent. Negative optional expenses are treated as zero, and percentages above 100 are capped in the calculation, even if the entered figure remains displayed. Check your inputs before using a result and replace an out-of-range entry with a realistic assumption.

How the estimates are calculated

Gross annual rent is weekly rent multiplied by 52. Gross yield is gross annual rent divided by property value, multiplied by 100. Optional net income subtracts the vacancy allowance, management charge and annual expenses entered. The management percentage applies to annual rent remaining after the vacancy allowance. Net yield is that estimated net annual income divided by property value, multiplied by 100.

For example, a $500,000 property at $500 a week produces $26,000 gross annual rent and a 5.20% gross yield. With 4% vacancy, an 8% management fee and $6,500 of other annual expenses, the model produces about $16,463 net annual income and a 3.29% net yield. This is an illustration of the inputs, not a Kaitaia market-rent claim or a quoted management fee.

What the result leaves out

The estimates do not include lending costs, tax treatment or depreciation. They also cannot predict changes in rent, vacancy beyond your allowance, unexpected repairs or costs you have not entered. The monthly net figure is annual estimated net income divided by 12 before finance and tax; it is not a forecast of your actual bank balance. Check whether any management quote includes GST and other charges and enter a consistent cost basis.

Use the result for a conversation

Yield is one measure, alongside the home’s condition, location, compliance, likely tenant demand and your personal financial position. Obtain independent legal, financial, tax and building advice where appropriate. Request a local rental appraisal, explore our property-management services and landlord and investment resources, or ask the Kaitaia team a property question using the form below. No rent or return is guaranteed.