About the Commercial Property Yield Calculator
Commercial property yields are usually quoted and compared more precisely than residential, since outgoings (council rates, land tax, insurance, maintenance) can be split between owner and tenant depending on the lease type. This calculator gives you both the gross yield (before any owner costs) and the net yield (after them).
Comparing two properties by yield only works if you're comparing the same type of yield — a listing's advertised "yield" doesn't always say whether it's gross or net, and the two can differ meaningfully depending on the lease. Running both numbers from the same inputs here lets you compare deals on equal terms rather than trusting whatever figure an agent quotes.
How it works
Gross yield = annual rent ÷ purchase price. Net yield = (annual rent − annual outgoings paid by the owner) ÷ purchase price. On a net lease, the tenant typically covers most outgoings, so the gross and net yield sit close together; on a gross lease, the owner absorbs more costs and the net yield sits meaningfully lower.
Assumptions and behaviour
- Rent is entered as an annual gross figure — if you have a monthly or weekly figure, multiply it out first.
- Outgoings should only include costs the owner actually pays — check your specific lease (net, semi-gross, or gross) to know what that is.
- Doesn't include purchase costs (stamp duty, legal fees) in the yield calculation — those affect your actual return but not the quoted yield.
Limitations
- Doesn't account for vacancy periods — see the Vacancy Rate Impact Calculator for that.
- Doesn't model rent reviews or lease expiry, both significant factors in commercial property returns.
- Yield alone doesn't capture capital growth potential or tenant covenant strength (how reliable the tenant is).
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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