NZ Rental Yield Calculator
Enter a property price and expected rent to see gross yield. Add typical NZ ownership costs — rates, insurance, property management, maintenance — to calculate net yield and cashflow position.
How this calculation works
Gross yield = annual rent ÷ purchase price × 100. Net yield = (annual rent − holding costs) ÷ purchase price × 100. Holding costs include council rates, insurance, property management fees (typically 7–10% of rent), and maintenance allowance (typically 5–15% of rent). Mortgage costs are calculated separately to show cashflow position. Interest-only repayments shown when selected.
Sources
- Tenancy Services — market rent data: tenancy.govt.nz
- QV and CoreLogic — property value data
- Typical NZ property management fees: 7–10% of rent + GST
When to use this
- — Comparing investment properties by yield before making an offer
- — Stress-testing whether rental income covers ownership costs
- — Understanding cashflow position with principal + interest vs interest-only
- — Comparing gross vs net yield to avoid underestimating costs
Important limitations
- — Does not include tax implications (ring-fencing, interest deductibility phase-in)
- — Does not include one-off purchase costs (legal, LIM, building inspection)
- — Does not account for vacancy periods (budget 2–4 weeks per year)
- — Brightline test may apply on resale — calculate separately
Common questions
What's a good rental yield in NZ?
Gross yields of 3–5% are common in main centres (Auckland, Wellington). Regional yields of 5–7% are achievable. Net yield is what matters — costs can be $5,000–$10,000+ per year before mortgage.
Can I claim mortgage interest as an expense?
Interest deductibility for residential investment properties is being phased back in. As of April 2024, 80% is deductible, rising to 100% from April 2025. This calculator shows pre-tax cashflow only — consult a tax professional.
Is interest-only still available for investors?
Yes, but banks assess serviceability on a P&I basis regardless. Interest-only terms are typically limited to 5 years before reverting to P&I.
Next step
Turn these numbers into a plan.
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Last reviewed: 2026-07-23. Information only — not financial advice. Use these estimates to prepare better questions before speaking with a lender, lawyer, or regulated adviser.