Investment Returns · Free Tool
Rental Yield Calculator
Measure how hard your property works as a rental: gross yield, net yield and the income left after costs.
Property & Rent
Annual rent: ₹3,00,000
Set 0 if your tenant pays maintenance.
Repairs, insurance, letting fees, etc.
Share of the year the property may stay unlet (1 month ≈ 8%).
Net Rental Yield
2.74%
Gross Rental Yield
3.75%
Annual Net Income
₹2.2 L
Where the Rent Goes
- Net income₹2.2 L (73%)
- Maintenance₹36,000 (12%)
- Property tax₹6,000 (2%)
- Other expenses₹15,000 (5%)
- Vacancy loss₹24,000 (8%)
- Annual rent
- ₹3,00,000
- Gross yield = rent ÷ price
- 3.75%
- Less: vacancy
- − ₹24,000
- Less: expenses
- − ₹57,000
- Annual net rental income
- ₹2,19,000
- Net yield = net income ÷ price
- 2.74%
Find High-Yield Rentals
Our advisors share options with strong rental demand
How this calculator works
Rental yield expresses a year’s rent as a percentage of the property’s price. It lets you compare rental returns across properties of different sizes and prices.
Gross yield uses the full annual rent. Net yield first deducts what the owner pays: maintenance, property tax, repairs, insurance and the rent lost to vacant months. Net yield is the better measure of what you actually earn.
Yields do not include price appreciation or financing. To see those, use the property ROI calculator.
Formula
Gross Yield = Annual Rent ÷ Property Price × 100
Net Income = Annual Rent × (1 − Vacancy) − Maintenance − Property Tax − Other Expenses
Net Yield = Net Income ÷ Property Price × 100
Assumptions
- Property price is the purchase price or current market value. Add purchase costs to it for a more conservative yield.
- Expenses and rent are annual figures at today’s levels.
- Loan EMIs are not included, since yield measures the property itself, not your financing.
Frequently asked questions
What is a good rental yield in India?
Residential yields in large Indian cities are often modest, frequently in the low single digits, while commercial property generally yields more. Compare against local rents for similar properties rather than a single benchmark.
What is the difference between gross and net rental yield?
Gross yield ignores costs. Net yield subtracts maintenance, tax, repairs and vacancy. The gap between the two shows how much of the rent the costs eat up.
Should I use purchase price or current value?
Use the purchase price (plus costs) to judge your own return. Use current market value to judge whether to keep holding, because that is the capital you could release by selling.
Does rental yield include appreciation?
No. Total return = rental yield + capital appreciation − financing and transaction costs. The ROI & Capital Appreciation calculator combines all of these.
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