Rental Yield Calculator
Work out the gross and net rental yield on any property live — enter the value, monthly rent and annual expenses to see if it's a good buy.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Yield breakdown
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We review the yield, rental-income tax and capital-gains angle before you commit.
Disclaimer: Indicative estimate only. Rental yield ignores loan financing, income tax on rent and capital appreciation. Local rents, expenses and market values vary widely — treat this as a first-pass screen, not investment advice.
What rental yield tells you
Rental yield is the annual rent a property earns expressed as a percentage of its value. It's the quickest way to compare one property against another — or against a fixed deposit — before you factor in loans, tax and future price growth. Gross yield uses rent alone; net yield subtracts running costs, so it's the number that actually reaches your pocket.
How to read your yield %
Indian residential real estate is a low-yield, appreciation-driven asset — most flats rent for 2–4% gross. Commercial property and some tier-2 markets run higher. Use this as a rough benchmark for the net yield this calculator gives you:
| Net rental yield | What it usually means |
|---|---|
| Below 2% | Low — you're paying largely for future price growth |
| 2% – 4% | Moderate — normal range for Indian residential |
| Above 4% | Good — strong rent relative to price for residential |
Worked example
Take a ₹80,00,000 flat rented at ₹25,000 a month with ₹40,000 of annual running costs — the default numbers in this calculator:
Key terms explained
Gross rental yield
Annual rent as a percentage of the property's value, before any costs. It's the headline number agents quote, but it overstates your real return because it ignores maintenance, tax and vacancy.
Net rental yield
The same ratio after subtracting annual expenses — maintenance, property tax, insurance and lost rent from empty months. This is the figure that reflects what you actually earn on the property.
Typical Indian yields
Residential property in India usually returns just 2–4% gross, well below a fixed deposit. Owners accept low yield because the main gain is expected in capital appreciation, not rent.
Capital appreciation
The rise in the property's price over time. It is separate from yield and not captured here — total return on real estate is roughly rental yield plus annual appreciation.
Questions people ask
Short answers on Rental Yield Calculator. Tap a question to open it.
01What is gross rental yield?
Annual rent divided by the property's market value, as a percentage. It is quick to compute but ignores every cost of ownership, so it always flatters the investment.
02How is net rental yield different?
Net yield deducts property tax, society maintenance, repairs, insurance, vacancy allowance and management costs from the rent before dividing by the value including acquisition costs. It is typically one to two percentage points below the gross figure.
03What is a good rental yield in India?
Residential yields in most Indian cities run around 2% to 4% gross, while commercial and pre-leased office property can offer 6% to 9%. Residential property is therefore largely an appreciation bet, not an income asset.
04Should the yield be computed on cost or on current market value?
On current market value if you are deciding whether to hold, because that is the capital you have tied up. On original cost if you are measuring how your original investment has performed.
05How does a home loan affect the yield?
It does not change the property's yield, but it changes your return. If the loan rate exceeds the net yield, the shortfall comes out of your pocket every month, and the investment only works if the property appreciates.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.