NZ Rental Yield Calculator.
Gross, net, after-interest, and after-tax yield — with NZ's ring-fencing rule and the 2025-26 interest-deductibility rule built in. Defaults use NZ-typical costs.
Enter a property value and weekly rent to see the yield.
Updates as you type — no signup needed.
One number isn't enough.
Most calculators show only gross. That's the number agents quote. It's also the one that hides everything that actually determines whether a rental makes money.
Gross yield
Annual rent ÷ property value
Ignores everything. Useful for quick comparison between listings, not for judging a real investment.
Net yield
(Rent after vacancy − opex) ÷ property value
Reduces rent for weeks vacant, then subtracts rates, insurance, management and maintenance. Before mortgage. This is the honest headline.
After interest
(Net income − interest) ÷ property value
Subtracts mortgage interest. Negative here means the property loses money before tax.
After tax
(Cashflow − tax) ÷ property value
Tax on profit at your marginal rate. Losses are ring-fenced — they don't give you a tax refund against salary.
What's a good yield in NZ?
Yields vary wildly by region — Auckland and Wellington trade capital growth for low yields; regional centres give cashflow but less growth.
| Region | Typical gross yield | After expenses (net) |
|---|---|---|
| Auckland | 3.0–4.0% | 1.0–2.5% |
| Wellington | 3.0–4.0% | 1.5–3.0% |
| NZ average | ~4.1% | ~2.0–2.5% |
| Regional centres | 5.0–7.0% | 3.0–5.0% |
As of Q3 2025. Source: Global Property Guide, Opes Partners regional data.
Rental yield, demystified.
What's the difference between gross and net yield?+
Gross yield is just annual rent ÷ property value × 100. It ignores everything else. Net yield first deducts vacancy from rent (rent × weeks-let ÷ 52), then subtracts operating costs (rates, insurance, management, maintenance), and divides by property value. It's the number that actually matters.
Why does net yield still look OK but cashflow is negative?+
Net yield ignores mortgage interest. Once you subtract interest, most leveraged NZ rentals in Auckland and Wellington run at a loss on paper. That's why we show a separate 'after interest' and 'after tax' yield.
What is ring-fencing?+
Since FY 2019-20, rental losses can't reduce the tax on your salary or other income. They carry forward and offset future rental profit. So a loss-making year doesn't give you a tax refund — our calculator reflects that.
Is mortgage interest deductible?+
Yes — from FY 2025-26 the interest limitation is fully repealed, so 100% of mortgage interest on residential rentals is deductible against rental income. This calculator assumes full deductibility.
What's a good rental yield in NZ?+
Gross yield in Auckland and Wellington is typically 3–4%. Regional centres (Hamilton, Palmerston North, Invercargill) run 5–7%. After all expenses, net yields end up around 1.5–5% — main centres at the lower end, regional centres at the upper end. Anything above 5% gross usually means higher vacancy or tenant risk.
What vacancy allowance should I use?+
2 weeks per year is conservative for most NZ markets. Auckland and Wellington usually see less; regional and seasonal markets (Queenstown, Rotorua) see more. If it's your first time letting, use 3–4 weeks.
Should I include principal repayments?+
No — principal isn't an expense, it builds equity. Only mortgage interest is a running cost. If you want to know cash out-of-pocket each week, take the cashflow number and subtract your principal repayment separately.
Zelvo tracks the tax side.
Once you own the property, Zelvo tracks rental income, applies IRD-compliant deductions, and produces IR3-ready figures — in about 10 minutes.
This is a guide only, not tax advice. Tax rules change each year and your situation may involve factors not covered here. Consult a registered NZ tax professional or chartered accountant before filing. Zelvo accepts no liability for errors in tax calculations or filings made using this tool.