Rental yield calculator
How much does a property earn in rent each year, as a share of what it costs? Everything is calculated on this device.
Net rental yield3.33%
Gross rental yield4%
- Money put in
- ₹60,00,000
- Rent for 12 months
- ₹2,40,000
- Rent actually collected
- ₹2,30,000
- Net income a year
- ₹2,00,000
- Years of rent to equal the money put in
- 25
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.
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.
For estimation only — verify with a professional.