Gross rental yield, net yield and cash flow explained

Gross yield is a screening measure

For a full-year weekly-rent assumption, gross rental yield is weekly rent × 52 ÷ purchase price × 100. This simple ratio excludes vacancy, running expenses and financing. If a listing uses an estimated value instead of your intended purchase price, the denominator is different.

Property Finder’s available rent and price estimates help identify candidates to investigate. They do not establish actual rent, tenant demand or the price at which a property will transact.

Account for vacancy and operating costs

Expected rent collected is weekly rent × (52 − vacant weeks). A management percentage should be applied to the rent base specified in the agreement; the Planner scenario applies the entered percentage to rent collected.

Subtract the chosen annual operating costs to obtain operating income before financing. Dividing that amount by the selected price gives a net operating yield under those assumptions. Check which costs are included before comparing another provider’s net-yield figure.

Cash flow includes the loan payment

For the simplified pre-tax Planner scenario, annual cash flow is rent collected less operating costs and annual loan repayments. Principal-and-interest repayments include principal. This cash result therefore differs from taxable rental profit.

A tax deduction, depreciation assumption or expected capital gain should not be added as cash received without a separate, appropriate model. Tax treatment depends on circumstances and current rules.

Use a repeatable checklist

Take a shortlist from Property Finder to Property Planner, then check rent, vacancy, individual expenses and financing. Revisit estimates with evidence from the actual property.

• Use consistent price and rent definitions.
• Compare financing assumptions explicitly.
• Check how much cash a shortfall requires over a year.
• Treat missing expense data as unresolved, not free.
• Read the worked rental example before relying on the highest yield.

Further checks

The official resources below can help you check current requirements. Links checked 2026-10-23.

• ASIC Moneysmart: property investment ↗
• LANDICATION data and calculation methods

Information is general and does not take account of your circumstances. Confirm current requirements, costs and site-specific issues with the responsible authority or appropriate adviser.