Return on investment calculator

NZ Rental ROI Calculator | Estimate Your Property Investment Returns

Free ROI calculator for property investors in NZ. Estimate your rental returns, adjust expenses, and learn how to improve your yield.

Jump to:

• Understanding your results

• ROI Vs Yield

• How to improve your rental ROI

• Answering common questions about rental ROI

• Maximise your rental return with Property Brokers

Understanding your results

What is rental ROI?

Rental ROI (Return on Investment) measures the profitability of a rental property. It shows how much income a property generates compared to the total investment.

How to return on an investment property

Understanding how to calculate returns on an investment property helps investors make smart decisions. Here’s how to measure and improve your returns.

Maximising returns on an investment property comes down to understanding key metrics:

• Gross rental yield = (Annual Rent ÷ Property Value) × 100 – measures rental income before expenses.
• Net rental yield factors in costs like rates, insurance, and maintenance for a clearer profitability picture.
• Return on investment (ROI) = (Net Profit ÷ Total Investment) × 100 – considers purchase price, renovations, and other costs.
• Capital growth = [(New Property Value - Original Purchase Price) ÷ Original Purchase Price] × 100 – tracks property appreciation.
• Example: A $600,000 property renting for $3,000 per month has a gross rental yield of 6%, but after expenses, the net rental yield may be closer to 4.3%. A $500,000 property appreciating to $650,000 over five years represents a 30% gain.

To maximise returns, investors should:

• Choose high-demand locations to reduce vacancy rates.
• Optimise rental income with upgrades or by allowing pets.
• Work with expert property managers to handle maintenance and tenant management.
• Leverage capital growth by refinancing or expanding your portfolio.

Want to see what your property could earn? Get a property rental appraisal today!

ROI vs Rental Yield - what's the difference?

• ROI accounts for income after expenses and is personalised to your situation.
• Rental Yield shows the gross income based on the property value, before costs.

Both are useful, but ROI gives you a fuller picture of financial performance. Want to compare both? Try our Rental Yield Calculator.

How to improve your rental ROI

Not getting the return you expected? Here are some proven ways to improve your rental performance:

• Review your rent: Is it in line with the market? Our property managers can advise.
• Reduce vacancies: Maximise income by keeping your property tenanted.
• Reassess your loan structure: Talk to a broker about interest-only options or refinancing.
• Upgrade strategically: Simple improvements like insulation or fresh paint can justify higher rent. See Renovations to Maximise Rental Return.
• Use professional property management: Avoid costly mistakes and access expert advice. Explore our Property Management Services.

We also offer a Service Guarantee that gives landlords added peace of mind.

Answering common questions about rental ROI

What’s the difference between ROI and rental yield?

ROI (Return on Investment) measures overall profitability, considering rental income, expenses, and capital gains. Rental yield focuses only on rental income compared to the property’s value.

• Gross Rental Yield = (Annual Rent ÷ Property Value) × 100
• Net Rental Yield = [(Annual Rent - Expenses) ÷ Property Value] × 100

Key Difference: ROI gives a full picture, while rental yield shows rental income potential.

Should I include capital gains in ROI?

Yes, if you’re looking at total investment returns. Capital gains reflect how much the property’s value has increased over time.

For a complete picture: Total ROI = (Net Rental Profit + Capital Gains) ÷ Total Investment × 100

If you only care about rental income, use net rental yield instead.

What costs should I include?

When calculating ROI or net yield, include:

• Mortgage interest payments
• Rates and insurance
• Maintenance and repairs
• Property management fees
• Body corporate fees (if applicable)
• Vacancy periods (lost rent)

Ignoring these can overestimate returns.

Is professional property management worth the fee?

Yes, if you want less stress and better returns.

A good property manager:

• Finds quality tenants quickly
• Handles repairs and legal compliance
• Reduces vacancy rates 
• Maximises rental income

Explore our property management services and see how they can boost your ROI.

What’s a good ROI in today’s market?

• 3-5% ROI = Average rental return
• 6-8% ROI = Strong rental performance
• Above 8% ROI = High return, but may involve higher risk

A balance of rental income + capital growth gives the best long-term results.

Want to check your property’s ROI? Get a property rental appraisal today!

Maximise your rental return with Property Brokers

Not sure if your rental is performing at its best? Our experienced team of Property Managers can help you:

• Review your current rent
• Reduce stress with expert management
• Improve ROI through better oversight and tenant care

Book a Free Appraisal Talk to a Property Manager

We manage thousands of rental properties across New Zealand. Whether you're a first-time landlord or a seasoned investor, we’ll help you get more from your investment.