Rental Yield & Real Estate ROI Calculator

Evaluate property investment profitability with BharatUtility's Rental Yield Calculator. Calculates Gross and Net Rental Yield after deducting society maintenance, property tax, and vacancy loss.

Interactive Rental Yield & Real Estate ROI Calculator
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Formula & Calculation Methodology

Gross Yield = (Annual Rent / Property Cost) × 100; Net Yield = ((Annual Rent - Maintenance - Tax) / Property Cost) × 100.

Step-by-Step Worked Example

Property Cost: ₹60,00,000 | Rent: ₹18,000/mo (₹2,16,000/yr) | Maintenance & Tax: ₹30,000/yr

  1. Gross Rental Yield = (₹2,16,000 ÷ ₹60,00,000) × 100 = 3.60%
  2. Net Annual Rental Income = ₹2,16,000 - ₹30,000 = ₹1,86,000
  3. Net Rental Yield = (₹1,86,000 ÷ ₹60,00,000) × 100 = 3.10%
  4. Capital Payback Period = 32.2 Years
Result: Gross Yield: 3.60% | Net Yield: 3.10% | Net Income: ₹1,86,000 / year

Average Rental Yields Across Indian Cities

Residential properties in Bengaluru, Pune, and Hyderabad average 3.2% to 4.2% rental yields. Mumbai averages 2.5% to 3.0%. Commercial office spaces and retail shops command higher yields of 7% to 9%.

Frequently Asked Questions

What is a good rental yield in India?

For residential real estate in India, a net rental yield of 3.5% to 4.5% is considered healthy. For commercial properties, 7% to 9% is the benchmark.

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