Rental Yield Calculator – Net & Gross Yield

The Rental Yield Calculator helps agents quickly see how much a property earns from rent compared to its cost. It shows both gross yield, which looks at total rent, and net yield, which adjusts for vacant months and yearly expenses. Use it when you need a clear percentage to discuss with buyers or landlords, without any guesswork. It works for any property type, from apartments to independent houses, and needs no external data.

How to use the calculator

Enter the property value in the ₹60,00,000 field.
Fill the monthly rent as ₹20,000.
Specify average vacant months per year as 0.5 months.
Add yearly owner costs in the ₹30,000 field.
If you have additional one‑time fees, include them in the purchase costs field; the calculator will still give the correct yield.
The tool instantly displays 4% gross yield, 3.33% net yield and ₹2,00,000 net income per year.

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Worked example

Input	Value
Property value	₹60,00,000
Rent per month	₹20,000
Months empty per year	0.5 months
Owner’s yearly costs	₹30,000

Result	Value
Gross yield	4%
Net yield	3.33%
Net income a year	₹2,00,000

Example inputs from a published worked example; results computed by the same code the calculator uses.

How it is calculated

Net yield = (rent × (12 − empty months) − yearly costs) ÷ (property value + purchase costs) × 100
Gross yield = rent for 12 months ÷ money put in × 100. Net yield takes off the empty months and the yearly costs.

Net yield = (rent × (12 − vacant months) − yearly costs) ÷ (property value + purchase costs) × 100. Here, “rent” is the monthly amount, “vacant months” reduces the rent earned, “yearly costs” are the expenses you pay each year, and “property value + purchase costs” is the total money you have invested. Multiply by 100 to get a percentage. Gross yield = (rent × 12) ÷ money put in × 100, which ignores vacancy and costs. The result shows how efficiently your capital works, helping you compare rental options side by side.

Assumptions

Yearly costs are what the owner pays: society maintenance, property tax, insurance, repairs and brokerage for new tenants.
Before income tax and before any home-loan interest. For tax, ask a CA.
Rent stays the same all year; rent increases and a change in the property’s value are not included.
This shows numbers only. It is not advice on whether to buy, sell or rent out.

When it helps

Use the calculator when a client asks for the profitability of a rental property, when you compare similar listings, or when you prepare a quick pitch for an investor. It does not consider future rent hikes, changes in property value, loan interest or tax deductions. The tool is also handy for quick internal reporting or when preparing marketing brochures that mention yield figures. For those aspects, consult a financial advisor or CA.

Frequently asked questions

How is net rental yield different from gross yield?

Gross yield uses full yearly rent divided by total money spent. Net yield reduces the rent by vacant months and subtracts yearly costs before dividing.

What costs should I include in the calculation?

Include society maintenance, property tax, insurance, repair costs and any broker fee paid for a new tenant. These are the yearly costs.

Can I use the calculator for a property with a home loan?

The calculator works on the total money you have put in, not on loan interest. For tax impact, ask your CA.

Sources

For estimation only — verify with a professional. Rates and rules vary by state and change over time; last verified on 2026-10-09. This is not legal, tax or financial advice.

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