Annual rent as % of property value. The Rental Yield Calculator takes property price (including purchase costs), monthly rent, annual expenses (maintenance, tax, insurance, vacancy) and returns net rental yield plus gross rental yield, annual rent, net rental income. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Property returns depend on assumptions about rent, occupancy, costs and appreciation that are easy to make optimistic. Enter conservative figures and remember that transaction costs, taxes and vacancy periods are real. Use the worked example below to check the maths against your own figures.
How the Rental Yield Calculator works
Indian residential yields run 2–4%, commercial 6–9%. Compare the net yield with a fixed deposit or bond: the difference is what you are paid for the risk and effort, before any appreciation.
Worked example
With the example values (property price (including purchase costs) of ₹8,000,000, monthly rent of ₹25,000, annual expenses (maintenance, tax, insurance, vacancy) of ₹40,000), the net rental yield is 3.25%; gross rental yield 3.75%, annual rent ₹300,000.00, net rental income ₹260,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Related Calculators
Frequently Asked Questions
How is net rental yield calculated?
gross yield = annual rent ÷ price; net yield = (annual rent − expenses) ÷ price.
Which figures do I need?
Property price (including purchase costs), monthly rent, annual expenses (maintenance, tax, insurance, vacancy). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Which costs are easy to forget?
Vacancy periods, maintenance, property tax, insurance, brokerage on purchase and sale, and stamp duty. Include them for a realistic return.
