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Rental Yield

Rental Yield Calculator

Calculate your property's gross and net rental yield after accounting for maintenance, property tax, insurance, and vacancy — the real return, not just the rent check.

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5%

💰 Your Rental Yield

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Gross Yield = (Annual Rent / Property Price) × 100
Net Yield = (Annual Rent − Expenses) / Property Price × 100
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Disclaimer: Results provided by this calculator are for educational and estimation purposes only and do not constitute financial, legal, or real estate advice. Actual property values, stamp duty rates, and loan eligibility depend on lender policies, government notifications, and specific property conditions. Consult a licensed valuer, CA, or lending institution before making real estate decisions.

Gross Yield vs Net Yield

Gross yield is simply annual rent ÷ property price — a quick but incomplete number. Net yield subtracts annual expenses (maintenance, property tax, insurance) and adjusts for expected vacancy, giving a far more realistic picture of your actual return.

Net Yield = (Annual Rent − Expenses) × (1 − Vacancy%) ÷ Property Price × 100

Worked Example

A ₹45,00,000 property renting for ₹18,000/month (₹2,16,000/year gross), with ₹40,000/year in maintenance, tax and insurance, and a 5% vacancy assumption: gross yield = 4.56%, net yield after expenses and vacancy = 3.67% — illustrating why gross yield alone overstates real returns, sometimes significantly.

Frequently Asked Questions

Residential rental yields in most major Indian cities typically range from 2-4% net, which is lower than many other countries — Indian real estate has historically been bought more for capital appreciation than rental income. Yields above 4-5% are considered strong and are more common in smaller cities or specific high-demand micro-markets.
Expenses (maintenance, property tax, insurance, occasional repairs) and vacancy periods between tenants eat meaningfully into gross rent — this is exactly why net yield, not gross, should drive investment decisions. A property advertised with an attractive gross yield can look much less appealing once realistic expenses are factored in.
No — yield measures income return only, not capital appreciation, which is often the larger driver of total real estate returns in India. For a fuller picture including cap rate, cash-on-cash return, and break-even occupancy, use our dedicated Rental Property ROI Calculator.
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