Rental yield calculator

A Rs 80,00,000 flat rented at Rs 22,000 a month has a gross yield of 3.30% and a net yield of 2.65% after costs and one vacant month.

Gross rental yield3.30%
Net rental yield2.65%
Rent for the year after vacancyRs 2,42,000
Net income after costsRs 2,12,000

Results update as you type. Nothing you enter is stored.

How it works

Gross yield is the year's rent as a share of the price. Net yield first removes vacant months and the costs an owner pays, such as society maintenance, property tax and repairs, so it is the better number for comparing a rental with other options.

Formula

Gross yield = rent x 12 / price; net yield = (rent x (12 - vacant months) - costs) / price

Frequently asked questions

What is a good rental yield?

There is no single answer; compare the net yield with what the same money earns elsewhere and remember property prices can also change.

Does rental yield include price growth?

No. It measures income only.

Is tax on rent included?

No. Rental income is taxable; the yields are before tax.

Related

This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.