Rental yield calculator
Short answer. Type a purchase price, a monthly rent, the months it sits empty and your yearly costs. The calculator returns gross yield, net yield and payback in years, and sets monthly net rent against a loan EMI if you add a loan. It does not know any market rent or price, so every figure comes from what you type.
Your numbers
These are example values, not market data. Type your own figures.
The price you would pay for the property, before one-time costs.
Rent for one month. Use the rent you have been quoted or are paid, not a figure from us.
Between 0 and 12. Zero means rent for all twelve months.
Yearly costs (optional)
Society or association charges for twelve months, if you pay them.
One-time costs (optional)
Type the rupee amount from your own paperwork. We do not work it out.
Type the rupee amount, not a percentage.
Loan (optional)
Leave at zero if you pay without a loan.
Use your lender's rate. 9% is an example, not a bank rate.
Your result
Net yield2.52%
- Gross yield
- 3.60%
- Payback
- 39.7 years
- Net income for the year
- ₹1,26,000
- Monthly net rent
- ₹10,500
The sums, line by line
| Step | Amount |
|---|---|
| Annual rent (monthly rent x 12) | ₹1,80,000 |
| Minus rent lost to vacancy | ₹15,000 |
| Minus yearly costs | ₹39,000 |
| Net income for the year | ₹1,26,000 |
| Price plus one-time costs | ₹50,00,000 |
| Net yield (net income / price plus one-time costs) | 2.52% |
Opens a short form so an advisor can call you. None of the amounts above are sent. General information, not investment advice.
How it works
Gross yield = annual rent / purchase price, where annual rent is monthly rent x 12. It ignores vacancy, costs and one-time costs.
Net yield = (annual rent - vacancy loss - yearly costs) / (purchase price + one-time costs). Vacancy loss = monthly rent x months empty. Yearly costs are maintenance, property tax, insurance and repairs. One-time costs are stamp duty and registration, and brokerage, which you type as rupee amounts.
Payback in years = (purchase price + one-time costs) / net annual income. If net annual income is zero or negative the payback is never reached, and the page says so instead of showing a number.
Monthly net rent = net annual income / 12. With a loan, the EMI comes from the standard EMI formula on the EMI calculator, and the monthly gap = monthly net rent - EMI. A negative gap means rent after vacancy and costs is smaller than the EMI.
Worked example with made-up numbers chosen only to show the sums: price 50,00,000, rent 20,000 a month, 1 month empty, yearly costs 30,000, stamp duty and registration 3,00,000. Annual rent 2,40,000, so gross yield 4.80%. Vacancy loss 20,000, so rent collected 2,20,000 and net income 1,90,000. Money put in 53,00,000, so net yield 3.58% and payback about 27.9 years.
Left out on purpose: rent increases, price changes, tax on rental income, interest benefits, selling costs and the cost of your own money. The calculator describes one year of the numbers you typed and predicts nothing.
General information, not investment advice. Nothing here is tax or legal advice, an offer, or a forecast. The figures are sums on the numbers you type. How we check our data.
Common questions
- What is rental yield?
- Rental yield is the yearly rent from a property written as a percentage of an amount you put in. It is a way to put rent and price on the same scale. It says nothing about whether a property will gain or lose value.
- What is the difference between gross and net yield?
- Gross yield divides a year of rent by the price and ignores everything else. Net yield first takes away the rent lost to vacancy and the yearly costs, and divides by the price plus one-time costs such as stamp duty and brokerage, so it is usually lower.
- How is rental yield calculated here?
- Gross yield = annual rent / price. Net yield = (annual rent - vacancy loss - yearly costs) / (price + one-time costs). Payback = price plus one-time costs / net annual income. The how it works section above has a worked example.
- Why does vacancy matter?
- Rent only arrives for the months a tenant pays. Each empty month removes one month of rent from the year, which lowers net income and the net yield. Enter the months you think the flat may sit empty between tenants, or zero to see the figure without it.
- Why does this calculator not show Bengaluru yields?
- Yield depends on the price and rent of one particular flat, and we hold no verified rent data for areas, builders or projects. A single number for an area would hide those differences, so we show none and work only from the figures you enter.