Capital Growth vs Yield Calculator

This calculator splits a New Zealand rental property's total return into its two components, rental yield and capital growth, so you can see clearly where your return actually comes from. Property investors talk about yield and growth as if they were rivals, and understanding the split is central to a sound strategy. Yield is the income return, the net rent the property earns as a percentage of its value, and it is the cash that lands in your account each year. Capital growth is the increase in the property's value over time, which builds wealth but only turns into cash when you sell or refinance. Together they make up the total return. Historically, much of the return from New Zealand residential property has come from capital growth rather than yield, which is why low-yielding city properties have still rewarded long-term owners, while higher-yielding regional properties deliver more cash flow but often slower growth. You enter the property value, the net annual rent after costs, and the capital growth you expect, and the calculator shows the yield percentage, the growth percentage, the combined total return, and the dollar value of each. Use it to judge whether a property suits a cash-flow or a growth strategy, and remember growth is an expectation, not a guarantee.

Yield uses net rent after costs. Capital growth is an expectation, not a guarantee. Excludes tax and gearing. Estimate only, not financial advice.