Gross yield on purchase price vs current value
Gross rental yield compares annual rent with a property value. Using the purchase price shows rent relative to your original price. Using current market value shows rent relative to what the property is worth today.
Use the same rent in both calculations
For residential property, annual gross rent is weekly asking rent multiplied by 52. Gross yield on purchase price is annual gross rent divided by purchase price. Gross yield on current value is annual gross rent divided by current market value. Multiply each result by 100 to display a percentage. Both figures exclude vacancy, expenses and loan repayments.
Worked example: $650 rent per week
Suppose you paid $750,000 and the property is now worth $845,000. At $650 per week, annual gross rent is $33,800. Gross yield on purchase price is 4.51%, while gross yield on current value is 4.00%. The rent is identical: the difference comes from the denominator.
Why a lower current-value yield can accompany growth
If market value rises while rent stays level, gross yield on current value falls. That does not mean rent fell or cashflow changed. It means the same rent represents a smaller proportion of the property’s value. The calculator reports capital growth separately so these changes are visible.
What gross yield leaves out
Gross yield does not tell you how much cash remains after costs. Check net yield and cashflow alongside it. For commercial property, this calculator uses annual GST-exclusive gross passing rent. A zero current market value makes current-value yield unavailable.
Try the residential calculator or commercial calculator. Read the methodology and limitations before using the results.