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Rental Yield Calculator

Calculate rental income return on your property investment

Last Updated: July 2026
Market value of property
Expected monthly rental income
Maintenance, tax, insurance
Gross Rental Yield
—
Rent / Property Value
Net Rental Yield
—
After expenses
Annual Rental Income
—
Total rent per year

Rental Yield Analysis

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What Is a Rental Yield Calculator?

A Rental Yield Calculator computes the rental income return on your property investment. It shows both gross yield (before expenses) and net yield (after expenses) as percentages of property value.

Rental yield is a key metric for evaluating property as an investment. While Indian residential properties typically yield 2-4%, commercial properties can yield 6-10%. Use this calculator to compare rental income potential across different properties.

Rental Yield Formula

Gross Yield = (Annual Rent / Property Value) × 100
Net Yield = ((Annual Rent - Expenses) / Property Value) × 100
Break-even = Property Value / Net Annual Income
Annual Rent = Monthly rent × 12Property Value = Market priceExpenses = Maintenance, tax, etc.

Frequently Asked Questions

What is rental yield?
Rental yield is the annual rental income as a percentage of property value. Gross yield = Annual Rent / Property Value. Net yield = (Annual Rent - Expenses) / Property Value. It measures the income-generating efficiency of your property.
What is a good rental yield in India?
Residential properties in India typically yield 2-4% (lower than global averages due to high property prices). Commercial properties yield 6-10%. A yield above 4% for residential is considered good in Indian metros.
Why is rental yield low in India?
Indian property prices have appreciated faster than rents, leading to low yields. Cultural factors (preference for ownership), high property prices relative to income, and rent control laws in some cities keep yields low. Investors focus on capital appreciation.
How to improve rental yield?
Increase rent (market-rate, proper furnishing), reduce property price (buy in emerging areas), reduce expenses (self-manage, tax optimization), or convert to commercial use. Furnished properties command 20-30% higher rents.
Is rental yield the only metric to consider?
No. Consider total return = rental yield + appreciation. A property with 3% yield but 8% appreciation gives 11% total return. Also factor in vacancy rates, maintenance costs, and liquidity. Rental yield alone doesn't capture full investment potential.

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