Is the rental yield calculator free?

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Can I use the results for planning?

Yes — use them as estimates and confirm important decisions with a qualified professional.

Rental Yield Calculator

Measure gross and net rental yield. This dedicated page is built for fast, clean calculations and search visibility.

Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.

How to use this calculator

Open the rental yield calculator page.
Enter the required values in the form fields.
Click Calculate to see the result and breakdown.
Use the related links to explore similar tools.

Results are estimates. For lending, taxes, trading, nutrition, or medical decisions, verify with a qualified professional.

Gross vs. net rental yield

Gross rental yield = (Annual Rent ÷ Property Value) × 100. Net rental yield deducts vacancy periods, maintenance, property tax, and management costs. In Indian metro cities, gross yields typically range from 2.5% to 3.5% — well below bank FD rates. Net yields after costs often fall to 1.5–2.5%.

Example: A ₹1 crore apartment in Bengaluru renting for ₹25,000/month has a gross yield of 3% (₹3L ÷ ₹1Cr). Deducting property tax (₹25,000/yr), maintenance (₹30,000/yr), and 1 month vacancy (₹25,000) brings net rent to ₹2.2 lakh — net yield of 2.2%. This is comparable to a savings account.

When rental yield makes sense as an investment

You can buy below market value, or you're in a location with strong rental demand (IT corridors, educational hubs, metro adjacency).
You leverage rental income to pay mortgage EMI with a positive cash flow position.
Commercial properties (office space, retail) typically yield 5–9%, significantly better than residential.
Total return (yield + appreciation) of 7.5–10.5% makes residential real estate competitive with balanced funds, but with far lower liquidity and higher transaction costs (5–7% stamp duty + registration).

Frequently asked questions

What is a good rental yield in India?▼

Gross rental yield of 3.5–4.5% is considered good for Indian metros. Commercial properties (office space, retail) typically yield 5–9%, significantly better than residential. Tier-2 cities like Pune, Hyderabad periphery, and Coimbatore can offer 4–5% gross residential yields because property prices are lower relative to rents.

How does rental yield compare to FD returns?▼

Current bank FD rates are 7–7.5% — more than double the net rental yield on most Indian residential properties. However, FDs don't provide capital appreciation. The correct comparison is total real estate returns (yield + appreciation) vs. post-tax FD returns. FD interest taxed at 30% slab reduces effective yield to ~4.9–5.25%.

How do I calculate gross rental yield?▼

Gross rental yield = (Monthly rent × 12) ÷ Current property market value × 100. For ₹20,000/month rent on a ₹80 lakh property: (₹20,000 × 12) ÷ ₹80,00,000 × 100 = 3%. For net yield, subtract annual expenses (maintenance, property tax, insurance, vacancy costs) from annual rent before dividing.

Does rental income have tax implications?▼

Yes. Rental income is taxed as 'Income from House Property' in India. After a standard 30% deduction (for repairs, regardless of actual spending), net rental income is added to your total income and taxed at slab rates. Home loan interest paid (for a let-out property) can be deducted without the ₹2 lakh cap that applies to self-occupied properties.