Net yield calculator
Calculate the net yield of any property in New Zealand and compare it to industry benchmarks.
Understanding net yields
Net yield is the annual rental income of a property after expenses, expressed as a percentage of its purchase price. It's calculated by deducting annual operating costs from the annual rental income, then dividing the result by the purchase price.
A net yield of 3% or above is generally considered acceptable for New Zealand new-build residential investment property, with net yields above 3.5% considered strong. New-build townhouses in major NZ cities typically produce net yields in the 2.5–3.8% range depending on location, asking price and rental market conditions.
Net yield gives a more accurate picture of actual investment returns than gross yield because it accounts for the real costs of ownership. This calculator applies a standard expense estimate of $9,100 per year, covering property management, rates, insurance, maintenance, accounting and residents association fees — based on typical NZ new-build investment property costs. You can see an example of net yield in our sample report.
Where gross yield measures income potential at a glance, net yield tells you what the property actually returns after the bills are paid. The gap between the two, typically 1.5–2% for NZ new-build property, is the cost of ownership expressed as a yield figure.
Want a full investment analysis?
Net yield helps you understand the financial viability of a property, but that isn't the full picture. A full Paragon report covers cashflow, growth profile, build quality and location risk. Invest with confidence and get an independent overview of the property you're considering.