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Rental Yield Calculator
Work out the annual rental yield you're earning on a property. Adjust any input below and your results update instantly.
Understanding rental yield
The concept, the motivation, and what to watch out for.
Gross yield looks better than it is
Rental yield is the annual rent a property earns, as a percentage of its value — a quick way to compare a property's income potential against other investments.
But the headline "gross yield" ignores ownership costs and vacancy — and if you financed the purchase with a loan, your actual return on the cash you put in can look completely different from the return on the property's full value.
Net yield is the more honest number
Subtracting expenses and any time the property sits vacant between tenants turns an optimistic gross yield into a more realistic one.
A loan changes the picture again
If you only put down a fraction of the property's price, your return on that cash (not the full price) is what a financed investment actually earned you.
How this calculator helps
Enter your property's value and rent — see your gross yield instantly, with optional expenses, vacancy, and financing to reveal the fuller picture.
Calculate your rental yield
Fill in the starred fields on the left — your results update instantly on the right.
Your details
Include expenses & vacancy
Off shows gross yield only.
I used a home loan
Shows cash-on-cash return.
≈ ₹60.00 L
e.g. ₹60,00,000 for a city apartment
e.g. ₹20,000 monthly rent
How these compare
vs. typical India long-term ranges
Gross rental yield: 4.00%
Typical Indian rental yield: 2–3%
These are example numbers. Edit any input on the left to see your own.
Your gross rental yield is
4.00%
₹2.40 L/year in rent
Annual rent
₹2.40 L
Property value
₹60.00 L
Your yield is above the typical 2–3% range for Indian residential property.
Your yield vs. other investments
Your gross yield against typical benchmarks for other asset classes.
Compare scenarios
See how rent or price changes move your yield.
Your plan
₹60.00 L · ₹20,000/mo
4.00%
Gross yield
Baseline
Rent +10%
₹22,000/mo
4.40%
Gross yield
+0.40pp
Property -10%
₹54.00 L
4.44%
Gross yield
+0.44pp
Worked example, using your numbers
A step-by-step walkthrough of how your rent becomes your yield.
Step 1 · Annual rent
At ₹20,000/month, your property generates
₹2.40 L
Step 2 · Gross yield
As a percentage of your ₹60.00 L property value, that’s
4.00%
Step 3 · vs. Fixed Deposit
A typical fixed deposit currently yields around
6.5%
✓
Your ₹60.00 L property earns a gross rental yield of 4.00%.
Personalised insights
What your numbers reveal, and what changing them would do.
Your property earns a gross rental yield of 4.00%
That's ₹2.40 L a year in rent, on a ₹60.00 L property.
Your yield is above the typical 2–3% range for Indian residential property
Most Indian residential property earns a gross yield in this range — appreciation, not income, is usually the bigger driver of returns.
A fixed deposit currently offers a comparable yield of 6.5%
Unlike a rental property, a fixed deposit needs no maintenance, has no vacancy risk, and no landlord responsibilities.
A 10% higher rent would lift your yield to 4.40%
Even without the property becoming more valuable, higher rent alone directly improves your yield.
How this is calculated
Every step of the math behind your result, shown in the open.
Gross rental yield
R = monthly rent, V = property value, Y_gross = gross rental yield (%)
Annualized rent (R × 12), as a percentage of the property's value (V) — the simplest, most commonly quoted yield figure.
Example: ₹2.40 L ÷ ₹60.00 L × 100 → 4.00% gross yield
Net rental yield, after costs
R = monthly rent, m = months actually rented (12 − vacancy), E = annual expenses, Y_net = net rental yield (%)
Actual rent collected (accounting for vacancy) minus annual expenses (E), as a percentage of the property's value — a more realistic return than the gross figure.
Example: (₹2.40 L − ₹0) ÷ ₹60.00 L × 100 → 4.00% net yield
Cash-on-cash return, if financed
D = cash invested (down payment), Y_cash = cash-on-cash return (%)
The same net income, but measured against only the cash you actually put in (D) rather than the property's full value — often a much larger number when a loan is involved.
Example: ₹2.40 L ÷ ₹60.00 L × 100 → 4.00% cash-on-cash return
Assumptions
- Rent, expenses, and vacancy are assumed constant across the year.
- Benchmark yields for other asset classes are indicative and change with prevailing rates.
- Rental income tax isn't included — figures are pre-tax.
- Figures are indicative only — not financial advice.
Did you know?
A few facts behind rental yield in India.
2-3%
Indian rental yields are famously low
Gross rental yields in most major Indian cities are commonly just 2–3% of a property's value — well below yields on many other investments.
Gross
The advertised yield is rarely the real one
A property's headline yield almost always ignores maintenance, property tax, and vacancy — the net figure is usually meaningfully lower.
Leverage
A loan can supercharge — or shrink — your return
Financing a purchase means your cash-on-cash return depends on your down payment, not the property's full price — a smaller down payment amplifies your return on the cash you did put in.
Total
Yield is only part of a property's return
Unlike a fixed deposit, a property can also appreciate in value over time — rental yield captures the income portion of your return, not the whole picture.
Frequently asked questions
Straight answers to the questions we hear most about rental yield.
What is rental yield?
Rental yield is the annual rent a property earns, expressed as a percentage of its value — a way to compare a property's income potential against other yield-generating investments.
What's the difference between gross and net yield?
Gross yield is just annual rent divided by property value. Net yield subtracts ownership costs — property tax, maintenance, insurance — and accounts for any vacancy between tenants, giving a more realistic return.
What is cash-on-cash return?
It's your net rental income measured against only the cash you actually invested (your down payment), rather than the property's full value — relevant if you financed the purchase with a loan, since it shows the return on your own money specifically.
What's a typical rental yield in India?
Gross residential rental yields in most major Indian cities commonly fall in the 2–3% range — notably lower than many other yield-generating investments, though property also offers potential price appreciation on top.
Does this account for income tax on rental income?
No, figures here are indicative and pre-tax. Rental income in India is taxed at your applicable income tax slab rate, after a standard deduction — which would reduce your actual take-home yield further.
Is this financial advice?
No. This tool provides indicative estimates based on your assumptions. Consult a certified financial advisor before making a real estate investment decision.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
Gross vs net rental yield, explained
Why the number quoted in a listing is rarely the number you'll actually earn.
5 min read
Strategy
Cash-on-cash return, explained
Why a financed property's real return depends on your down payment, not its price.
5 min read
Fundamentals
Rental yield and total property returns
How rental income and appreciation combine into your real total return.
4 min read