Rental Yield Calculator (India)

How to use this rental yield calculator

1. Property price: what you would pay for the flat or house, or what it is worth today.
2. Monthly rent: the full rent a tenant pays, before any empty months.
3. Open "More options" for the costs: Stamp duty, registration & fees (used for net yield only), Management fee, Vacancy in months a year, Property tax (municipal), Property insurance, Repairs & upkeep and Society maintenance as a yearly total.
4. Set a Target yield and choose whether the Target applies to gross or net yield.

The result shows the gross yield, the net yield, your annual rent and expenses, and the net rental income before EMIs and tax. It also gives the rent you would need, and the most you could pay, to hit your target, with a breakdown of where the rent goes.

Rental yield formulas

Rental yield by rent

The same ₹75 lakh flat, with the costs from the worked example:

Most costs stay the same whatever the rent, so they hit cheaper lettings hardest. At ₹15,000 a month, expenses take 44% of the rent; at ₹40,000, only 22%.

Comparing two flats: gross yield can mislead

Say you are choosing between a ₹50 lakh flat that lets for ₹15,000 a month and a ₹1 crore flat that lets for ₹25,000. On gross yield the cheaper flat wins, 3.6% against 3%. Now give both the same running costs as the worked example, with stamp duty and fees at 7% of each price. The cheaper flat’s net yield falls to 1.89%, while the dearer one keeps 1.97%, because fixed costs such as society maintenance, repairs and property tax take a bigger bite out of a smaller rent. Enter each property’s real costs before you decide.

What counts as a good rental yield in India

Rental yields in Indian cities are often around 2–4% gross, and the calculator’s 4% default target sits at the top of that range. Society maintenance, property tax, repairs and empty months bring the net figure lower again, and EMIs and income tax come on top of that, so compare properties on net yield.

Yield is only half of a property’s return; the rest is any rise in value. If you would buy with a home loan, a 2–4% yield usually covers only part of the EMI. The rental property calculator shows the cash flow after EMIs and the long-run return. The same low yields are why renting your own home can work out cheaper than buying; test it with the rent vs buy calculator.

Indian costs that belong in net yield

• Society maintenance: the monthly charge your housing society bills, entered as a yearly total. There are no HOA or strata fees in India.
• Property tax: paid to the municipality each year.
• Stamp duty and registration: each state sets them, typically about 5–7% of the property value plus about 1% for registration, and some states offer concessions for women buyers. The ₹5,25,000 default is 7% of ₹75 lakh.
• Vacancy: rent in India is quoted per month, so empty periods are counted in months.
• Management fee: leave it at 0 if you find tenants and handle repairs yourself.

The target works for net yield too. Switch it to net and set 3%, and the same flat would need ₹27,705 a month in rent, or a price of no more than ₹46,75,000. If you are buying with a loan, the home loan EMI calculator shows the EMI the rent would have to cover.

This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.