Property Yield Calculator
The return a property earns on its value: net annual income divided by price. The first number every commercial investor checks.
Working backwards from a target yield? Use the Property Value Calculator.
How yield is calculated
yield = net annual income ÷ property value × 100
Yield moves inversely to price: when buyers pay more for the same income, yields compress. Comparing a property's yield against recent sales of similar assets is the quickest sanity check on an asking price.
Frequently asked questions
What is the difference between gross and net yield?
Gross yield uses the headline rent; net yield deducts the outgoings the landlord actually pays (rates, insurance, management, maintenance). Net yield is the honest number, and the one used in commercial marketing campaigns is usually net of recoverable outgoings, so read the fine print.
What is a good commercial property yield?
There is no universal number. Yields vary with asset class, location, lease length and tenant quality, and they move with interest rates. Compare against recent comparable sales rather than a rule of thumb.
Is a higher yield always better?
No. A high yield often prices in risk: a short lease, a weak tenant, a declining location or looming capital expenditure. A low yield can reflect security, or simply an overheated market.
Does this calculator account for finance or tax?
No. It is the plain income return on value, before loan costs, depreciation and tax. Those depend on the buyer, not the building.
Related calculators
Know the market before you negotiate
Every calculation here ends in a negotiation. MarketBuddy gives you the market side: rents, listings and trends across 100,000+ Australian commercial properties.
The calculators on this site are provided for general information only. Results are estimates, do not account for the terms of any specific lease, loan or property, and do not constitute financial, legal or valuation advice.