Rental Yield Calculator
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Runs entirely in your browser — your numbers never leave this page.
How it works
Gross yield (annual rent ÷ price) is the number brokers quote. Net yield — after maintenance, property tax, vacancy and income tax — is the number that matters, and it is usually 1–1.5 points lower.
Indian residential property typically yields 2–4% net. That is not a flaw in your property; it is the market. The return in Indian real estate has historically come from appreciation, not rent — which is why a 3% yield can still be a fine investment if the area appreciates, and a terrible one if it does not.
Use this as a hurdle test: if net yield is under 3% and you are not confident about appreciation, the same money in a 7.5% FD (taxed, ~5.2% post-tax at 30% slab) earns more with zero tenant calls at 2 AM.
Frequently asked questions
What is a good rental yield in India?
Residential: 2–4% net is normal; 4%+ is good. Commercial: 6–9%. If a residential listing promises 6%+, check whether the rent or the price is unrealistic.
How is rental income taxed?
As "income from house property": deduct municipal taxes paid, then take a flat 30% standard deduction on the balance. The result is taxed at your slab. No deduction for actual repair expenses.
Should I use gross or net yield?
Net, always. Gross ignores maintenance (typically 0.5–1% of property value yearly), vacancy, property tax and income tax — which together erase a third or more of the gross.
How do I account for vacancy?
Assume 5–8% (2–4 weeks empty per year) in liquid markets, more for luxury or odd layouts. One month vacant on a ₹22,000 rental costs ₹22,000 — an 8% hit to that year's yield.
Does home loan interest affect yield?
For a let-out property, the full interest is deductible from rental income (no ₹2L cap). This calculator shows pre-financing yield; subtract your EMI interest separately to get leveraged yield.
Is rental yield the full return?
No — total return = yield + appreciation − costs. A 3% yield with 6% appreciation beats a 5% yield with 0% appreciation. Yield just tells you what the property pays you to wait.
Why are Indian rental yields so low?
High property prices relative to rents, driven by appreciation expectations and owner-occupier demand. It is structural — compare against local yields, not US/EU numbers you see online.
Can I increase my rental yield?
Furnishing (10–20% rent premium), renting by room in student/IT corridors, or buying below market. Cosmetic upgrades rarely move yield — location and layout do.
What about maintenance surprises?
Budget 0.5–1% of property value per year for repairs, plus one big hit (plumbing, waterproofing) every 5–7 years. This calculator's maintenance input should include an average of these.
Rent vs FD — how do I compare?
Compare post-tax net yield to post-tax FD rate (7.5% FD ≈ 5.2% post-tax at 30% slab). Property wins only if appreciation + yield beats that with acceptable risk and effort.