About the Rental Yield Calculator
What is the Rental Yield Calculator?
Rental yield tells you how much income a property earns each year as a percentage of what you paid for it. It is the quickest way to compare a flat with a fixed deposit, bond or another property.
This rental yield calculator shows the gross yield (rent ÷ price) and the more useful net yield, after yearly costs and months when the flat is empty.
How to use the Rental Yield Calculator
- Property Price incl. Purchase Costs (₹) (sample: 80,00,000)
- Monthly Rent (₹) (sample: 25,000)
- Yearly Costs – maintenance, property tax, insurance, repairs (₹) (sample: 40,000)
- Expected Vacancy (months per year) (sample: 1)
- Press Calculate Rental Yield (results also refresh as you type). The result card shows the Net Rental Yield, along with Gross rental yield, Net yearly rental income, Price-to-rent ratio and Years of net rent to recover the price.
Formula used
Net rental yield = (Monthly rent × (12 − Vacant months) − Yearly costs) ÷ Property price × 100
- Gross yield = monthly rent × 12 ÷ price × 100
- Yearly costs = maintenance, property tax, insurance and repairs paid by the owner
Include stamp duty and registration in the price for a true return on the money you put in.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Property Price incl. Purchase Costs (₹) | 80,00,000 |
| Monthly Rent (₹) | 25,000 |
| Yearly Costs – maintenance, property tax, insurance, repairs (₹) | 40,000 |
| Expected Vacancy (months per year) | 1 |
| Result | Value |
|---|---|
| Net Rental Yield | 2.94% |
| Gross rental yield | 3.75% |
| Net yearly rental income | ₹2,35,000 |
| Price-to-rent ratio | 26.7× |
| Years of net rent to recover the price | 34 |
Tips for using the Rental Yield Calculator
- Residential yields in Indian metros are typically 2–4% gross; commercial property often yields 6–9%.
- Rental income is taxable: after the 30% standard deduction, it is added to your income at slab rates.
- Total return = rental yield + price appreciation; low-yield areas need strong appreciation to make sense.