What is Rental Yield Calculator?
Calculate gross and net rental yield on investment property and compare with FD and equity returns Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Gross yield uses total rent. Net yield deducts maintenance (₹3-5/sqft/month), property tax (0.1-0.3% of value), vacancy (assume 1-2 months/year), and insurance. Net yield is typically 0.5-1.5% lower than gross.
How to Use This Calculator
- Enter the property purchase price
- Enter current or expected monthly rent
- Enter annual maintenance, property tax, and other expenses
- Enter expected vacancy months per year
- Click Calculate to see gross yield, net yield, and comparison with FD rates
Worked Example
Property: ₹80L | Monthly Rent: ₹18,000 | Annual Rent: ₹2.16L | Expenses: ₹50,000 | Vacancy 1 month: ₹18,000 → Gross Yield: 2.7% | Net Yield: 1.8%
Why Use This Tool?
- Compare property rental return with FD and equity yields
- Find price-to-rent ratio to assess buy vs rent decision
- Identify cities and localities with best rental yields
- Calculate exact ROI including capital appreciation alongside rent
Frequently Asked Questions
What is a good rental yield in Indian cities?
Gross rental yields in India: Mumbai: 1.5-2.5% | Delhi: 2-3% | Bengaluru: 2.5-3.5% | Hyderabad: 3-4% | Pune: 2.5-3.5% | Chennai: 2.5-3.5%. Yields are low in metro cities due to high property prices. Commercial properties typically yield 5-8% gross.
How does rental yield compare to FD returns?
Net rental yield of 2-3% is significantly lower than FD rates of 6.5-7%. However, property also appreciates 6-8% annually. Combined total return (yield + appreciation) of 8-11% is comparable to or better than FD in the long run, though with more complexity and illiquidity.
Is rental income taxable in India?
Yes. Net rental income (rent minus municipal taxes, and 30% standard deduction for repairs) is taxable as "Income from House Property" at your slab rate. If you have a home loan on the rental property, interest paid (actual, no limit) is deductible. TDS at 5% applies if rent exceeds ₹50,000/month.
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