What is a good rental yield in NZ?

A gross rental yield of 5–7% is generally considered good for NZ investment property. Regional cities like Hamilton, Palmerston North and Dunedin often yield higher than Auckland or Wellington due to lower purchase prices relative to rents.

How do you calculate rental yield?

Gross rental yield = (annual rent ÷ purchase price) × 100. Net rental yield subtracts annual expenses (rates, insurance, property management, maintenance) before dividing by the purchase price.

What is the difference between gross and net rental yield?

Gross yield uses total rental income divided by property value. Net yield deducts all ownership costs — rates, insurance, property management fees, repairs and vacancy — giving a more accurate picture of actual return.

What LVR limits apply to NZ investment properties?

The Reserve Bank of New Zealand (RBNZ) requires investors to have at least a 35% deposit (LVR ≤ 65%) for residential investment properties. Owner-occupiers typically need a minimum 20% deposit.

Free NZ Rental Yield Calculator — Gross, Net Yield & LVR

Quick Answer

Rental yield in NZ is calculated by dividing annual rent by the property purchase price, then multiplying by 100. Gross yield is before expenses; net yield deducts rates, insurance, management fees, and maintenance. A good rental yield in NZ is 5–7% gross — Gisborne leads at 7.5–8.5%, Auckland is lowest at 3.5–4.5%. Enter your property details below to calculate gross yield, net yield, weekly cash flow, and LVR instantly.

Property details

Quick presets

Weekly rent

Purchase price

Weekly rent

Rent % of price / week

Deposit

Interest rate (%)

Expenses assumption

% of rent

Property management

% of rent

Typically 8 – 10%

Council rates

$ / yr

Insurance

$ / yr

Repairs & maintenance

$ / yr

Body corp / other

$ / yr

Vacancy allowance

% of rent

~1 week/yr = ~2%

Loan settings

Loan term (years)

Repayment type

Your results

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Net Yield

— %

after expenses

Gross Yield

— %

before expenses

Weekly Cash Flow

— /week

after mortgage & costs

LVR

— %

loan to value ratio

Enter your details to calculate instantly.

Deposit vs Loan

— —

Deposit Loan

Income vs Expenses

— —

Net income Expenses

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Gross vs net yield

Gross yield is rent divided by purchase price — before any costs. Net yield deducts operating expenses (management, rates, insurance) but not the mortgage. Use net yield to compare properties fairly.

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Cash flow explained

Cash flow is what you actually pocket each week after paying the mortgage and all operating expenses. Positive cash flow means the property pays for itself — negative means you top it up from your income.

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What is LVR?

Loan-to-Value Ratio is your loan as a percentage of the property price. Most NZ banks require a 20–35% deposit for investment properties, meaning an LVR of 65–80% maximum.

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NZ Rental Yield Calculator

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Gross vs net yield

Cash flow explained

What is LVR?

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