Rental Yield Calculator
Calculate gross and net rental yield on an Indian property after maintenance, property tax, vacancy and management costs, and compare it against a fixed deposit.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Rental yield is the annual rent expressed as a percentage of what the property cost. Gross yield ignores expenses and always flatters the asset. Net yield — after maintenance, property tax, vacancy and repairs — is the number that actually compares with a fixed deposit.
Indian residential yields are famously low: 2% to 3.5% net in most metros, against 6.5–7.5% on a fixed deposit. Residential property in India has historically been a capital-appreciation play, not an income one. Commercial and pre-leased assets run considerably higher.
Gross versus net
Gross yield = (monthly rent × 12) ÷ property cost × 100
Net yield = (effective rent − maintenance − property tax − repairs) ÷ property cost × 100
Two things make the honest number lower than the brochure number. First, use the all-in cost — price plus stamp duty, registration and interiors — not the headline price. Second, allow for vacancy: one month empty between tenants is 8.3% of the year gone.
A worked example
An ₹80 lakh flat let at ₹25,000: gross rent is ₹3,00,000, a gross yield of 3.75%. Take off 8% vacancy (₹24,000), ₹42,000 of society maintenance, ₹12,000 property tax and 5% for repairs (₹13,800), and net income is ₹2,08,200 — a net yield of 2.6%. The same ₹80 lakh in a 7% fixed deposit earns ₹5,60,000, so the flat is ₹3,51,800 a year behind on income alone. It has to appreciate to win.
Costs people leave out
- Income tax on rent — rental income is taxable at your slab, after a 30% standard deduction and any home-loan interest
- Brokerage on re-letting, usually a month's rent each time the tenant changes
- Repainting and deep cleaning between tenancies
- Society transfer and NOC charges in many housing societies
Turn a calculation into an enquiry
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Create your free property pageFrequently asked questions
What is a good rental yield in India?
For residential property, 3% gross is average in the metros and anything above 4% net is strong. Commercial and pre-leased assets commonly yield 6–9%. Compare always against the post-tax fixed deposit rate.
Why are rental yields so low in India?
Property prices have risen faster than rents for two decades, particularly in metros. Buyers have been paying for expected capital appreciation rather than income, which compresses yield.
Should I include my home loan EMI in the yield?
No. Yield measures the asset, not how you financed it. Model the loan separately as cash flow — a property can have a healthy yield and still be cash-flow negative while the EMI runs.
Is rental income taxable in India?
Yes, as Income from House Property. You get a flat 30% standard deduction for repairs plus a deduction for home-loan interest, and the balance is taxed at your slab rate.
How much vacancy should I assume?
One month a year (8%) is a reasonable default for a well-located metro flat. In slower markets or for larger units, 10–15% is more realistic.