Net yield calculator
Calculate the net yield of any property in New Zealand and compare it to industry benchmarks.
How to calculate net yield
Net yield is the annual rental income of a property after expenses, expressed as a percentage of its purchase price.
Net yield = ((Annual rent − Annual expenses) ÷ Purchase price) × 100
For example, a $500,000 property with $550 weekly rent ($28,600/year) and $9,100 in annual expenses has a net yield of 3.9%.
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.