Rental Yield Calculator

Calculate gross and net rental yield on your property investment.

Frequently Asked Questions

What is 'Rental Yield'?

It is the annual rent you earn from a property expressed as a percentage of its total cost. It helps investors decide if a property is a good investment.

How do I calculate Gross Rental Yield?

Formula: `(Annual Rent / Property Cost) x 100`. For example, a house costing ₹1Cr and renting for ₹40k/month has a yield of 4.8%.

What is a 'Good' rental yield in India?

Residential properties in India typically yield 2-3%. Commercial properties (offices, shops) yield much higher, usually between 6% and 9%.

What is Net Rental Yield?

Net yield accounts for expenses like property tax, maintenance fees, and repairs. It gives a more realistic picture of your actual profit.

Does location affect rental yield?

Yes. Properties near IT hubs or colleges often have higher yields due to high demand, even if the capital growth is slower.

Can I use rental yield to compare with Fixed Deposits?

Yes. If an FD gives 7% and a property gives 3% yield, the property only makes sense if you also expect significant 'Capital Appreciation' (price increase) over time.

Does a furnished apartment give better yield?

Yes. Furnished apartments can command 20-30% higher rent, but you must also factor in the higher upfront cost and more frequent maintenance.

What are 'Common Area Maintenance' (CAM) charges?

These are fees paid to the society for security and cleaning. In many calculations, the tenant pays this, so it doesn't reduce your net yield.

How does vacancy affect my yield?

If your property stays empty for 2 months, your annual income drops by ~16%. Our tool allows you to factor in 'Expected Vacancy' for a conservative estimate.

Is rental yield the same as ROI?

No. Rental yield only tracks rent. ROI (Return on Investment) includes both rent and the increase in the property's market value over time.