This calculator divides annual rent by construction cost. Using indicative weekly rents of $500 to $800 a week and an indicative construction cost of $166,000 for a Kōwhai 60, the gross figure is approximately 19% at $600 a week with full occupancy. Land value, finance, tax and property expenses are excluded. These are planning estimates, not an income forecast.
Enter the estimated building cost and weekly rent to calculate annual rental income and gross return.
Gross return and repayment period exclude rates, insurance, maintenance, finance costs and vacancies. Indicative only, not financial advice.
These examples use indicative two-bedroom rents and a $166,000 Kōwhai 60 construction cost. They assume full occupancy and exclude expenses. Each area links to its local guide.
| AREA | REGION | INDICATIVE RENT | GROSS YIELD ON $166K | COST ÷ ANNUAL RENT |
|---|---|---|---|---|
| Queenstown | Tāhuna · Central Otago Lakes | $800/wk | 25.1% | ~4.0 yrs |
| Auckland | Tāmaki Makaurau · Auckland | $750/wk | 23.5% | ~4.3 yrs |
| Wānaka | Central Otago Lakes | $750/wk | 23.5% | ~4.3 yrs |
| Wellington | Te Whanganui-a-Tara | $700/wk | 21.9% | ~4.6 yrs |
| Tauranga | Bay of Plenty | $650/wk | 20.4% | ~4.9 yrs |
| Hamilton | Kirikiriroa · Waikato | $620/wk | 19.4% | ~5.1 yrs |
| Christchurch | Ōtautahi · Canterbury | $620/wk | 19.4% | ~5.1 yrs |
| Napier & Hastings | Ahuriri & Heretaunga · Hawke's Bay | $600/wk | 18.8% | ~5.3 yrs |
| Nelson | Whakatū · Te Tauihu | $600/wk | 18.8% | ~5.3 yrs |
| New Plymouth | Ngāmotu · Taranaki | $580/wk | 18.2% | ~5.5 yrs |
| Whangārei | Te Tai Tokerau · Northland | $580/wk | 18.2% | ~5.5 yrs |
| Dunedin | Ōtepoti · Otago | $580/wk | 18.2% | ~5.5 yrs |
| Rangiora & North Canterbury | Waimakariri | $580/wk | 18.2% | ~5.5 yrs |
| Palmerston North | Te Papaioea · Manawatū | $570/wk | 17.9% | ~5.6 yrs |
| Blenheim | Wairau · Marlborough | $570/wk | 17.9% | ~5.6 yrs |
| Rotorua | Te Arawa · Bay of Plenty | $560/wk | 17.5% | ~5.7 yrs |
| Gisborne | Tairāwhiti | $550/wk | 17.2% | ~5.8 yrs |
| Ashburton | Hakatere · Mid Canterbury | $540/wk | 16.9% | ~5.9 yrs |
| Whanganui | Whanganui | $520/wk | 16.3% | ~6.1 yrs |
| Timaru | Te Tihi-o-Maru · South Canterbury | $520/wk | 16.3% | ~6.1 yrs |
| Invercargill | Waihōpai · Southland | $500/wk | 15.7% | ~6.4 yrs |
Indicative planning figures based on typical advertised two-bed rents. Verify against Tenancy Services bond data for your suburb before committing. Gross figures before rates, insurance, maintenance and vacancy.
Gross rent does not include your ownership costs. Include these expenses, along with finance and tax, when preparing a rental budget.
Compare the full costs and risks of each option, using consistent assumptions.
A property purchase usually includes land and a building. The examples on this page include only the construction cost of a small home on land already owned. Their percentages are therefore not directly comparable. Consider the land value, site work, finance, ongoing costs and local rental demand. Read your council’s page for an overview of the local requirements that can affect your project.
This calculator divides annual rent by construction cost and expresses the result as a percentage. It excludes land value and expenses. Compare scenarios using consistent costs and rent assumptions, and calculate your likely net return separately.
Gross yield uses rent before expenses. Net yield deducts relevant property expenses before calculating the return. This tool shows gross yield, adjusted for your selected occupancy, and does not calculate your net return.
The default is 96%, approximately two vacant weeks each year. Choose an assumption based on local demand and your intended tenancy arrangement. Try lower occupancy to see how vacant periods affect the estimate.
No. The calculator does not include tax or assess deductions. Ask your accountant how rental income and project expenses would be treated in your circumstances.
No. Include any management fees in your own expense budget, along with rates, insurance, maintenance, finance and other costs.
No. It shows only how many years of the assumed gross rent equal the construction cost. Expenses, loan interest, tax, changing rent and vacancy affect the actual result. It is not a net payback forecast.
Compare layouts, floor areas and fixed plan-set prices for your property.