A Moneybren tool
NZ RENTAL YIELD CALCULATOR
Gross yield is the number in the listing. Net yield and weekly after-tax cashflow are the numbers that decide whether a New Zealand rental makes or costs you money — here are all three.
Your numbers
$
$/wk
wks
$/yr
$/yr
$/yr
Rule of thumb: 0.5–1% of the property value per year, more for older homes.
% of rent
Set to 0 if self-managing — then your time is the cost.
$/yr
$
% pa
Interest-only assumed — how most investors hold, and the honest cashflow view.
This property
—
The annual ledger
The fine print, honestly. Yields here are what the numbers say, not what the listing says — gross yield flatters, net yield after real costs is the honest one. Interest is fully deductible again for residential rentals, but rental losses are ring-fenced: a loss reduces future rental income, not your salary tax — negative gearing doesn’t hand you a refund in New Zealand. Not modelled: capital growth (the reason most people actually buy), the bright-line test (2 years) if you sell early, accounting fees, healthy homes upgrades, or the tenant from hell. A property that costs you money weekly is a bet on capital growth — make that bet knowingly.
How to use this calculator
Enter the price, rent, running costs and mortgage. The calculator gives gross yield, net yield, and the weekly after-tax cashflow — the number that actually hits your account.
Stress-test it: add two more vacant weeks, bump the rate 1%, and see if the property still survives. If it only works in the sunny scenario, it doesn’t work.
This is a tool only, and none of the information it produces is financial advice. Its accuracy is not guaranteed. Always check your own figures and get advice from your own financial professionals before making decisions.