Gross yield calculator
Calculate the gross yield of any property in New Zealand and compare it to industry benchmarks.
Understanding gross yields
Gross yield is the annual rental income of a property expressed as a percentage of its purchase price. It's calculated by multiplying the weekly rent by 52 to get annual income, then dividing by the purchase price.
A gross yield of 5% or above is generally considered acceptable for New Zealand residential property investment, with yields close to 6% considered very strong.
Gross yield is a common tool used by investors to understand the property’s income potential at a glance before considering expenses, financing, and other investment factors. You can see an example of this metric in our sample report.
Gross yield doesn't account for expenses such as property management fees, insurance, rates or maintenance. Net yield, which deducts these costs, gives a more accurate picture of actual returns. A rough rule of thumb is that net yield is typically 1.5–2% lower than gross yield for NZ residential property.