What is Rental Yield?
Rental Yield measures the return on a property investment from rent. In India, gross rental yields in major cities are typically 2-4% — lower than FD returns. However, total returns include appreciation (5-10% in good locations).
Net rental yield accounts for maintenance, property tax, insurance, vacancy, and repairs. It's the true measure of rental income return.
Formula
Gross Rental Yield = (Annual Rent / Property Value) × 100 Net Rental Yield = (Annual Rent − Expenses) / Property Value × 100 Typical Indian rental yields: Mumbai: 2-3% Bangalore: 3-4% Delhi: 2-3% Pune: 3.5-4.5% Hyderabad: 3-4%
How to use this Rental Yield Calculator?
1. Enter property purchase price. 2. Enter expected monthly rent. 3. Add annual maintenance and property tax. 4. Estimate vacancy months. 5. See gross and net rental yields.