Source: https://awesomecalcs.com/rental-yield-calculator
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# Rental Yield Calculator

> Check whether a property rental income justifies its price with gross and net rental yield.

Interactive calculator: https://awesomecalcs.com/rental-yield-calculator

## How this is calculated

Computes gross rental yield (annual rent as a percentage of purchase price, before expenses) and net rental yield (after property tax, maintenance, insurance, and expected vacancy), letting a buyer compare rental income against a property price rather than just eyeballing rent numbers.

**Formula:** `annualRentalIncome = monthlyRent x 12 x (1 - vacancyRate/100); grossYield = (annualRentalIncome / purchasePrice) x 100; netOperatingIncome = annualRentalIncome - (propertyTax + maintenance + insurance); netYield = (netOperatingIncome / purchasePrice) x 100`

**Variables:**

- `purchasePrice`: Property purchase price or current market value, in INR
- `monthlyRent`: Expected or actual monthly rental income, in INR
- `vacancyRate`: Percentage of the year the property is expected to sit unoccupied

Reference: Matches the gross/net rental yield methodology used by Indian real-estate portals such as NoBroker and Housing.com.

## Assumptions

- Assumes rent and expenses stay constant for the year being evaluated; it does not project rent escalation or expense inflation over multiple years.
- Does not account for loan EMI or financing costs; yield is measured against the purchase price, not the cash actually invested.

## Shareable URL parameters

Append these as query parameters to https://awesomecalcs.com/rental-yield-calculator to deep-link directly into a pre-filled, pre-calculated result page. Values outside the given range are clamped, not rejected.

- `price` (number (100000 to 200000000 INR), default `5000000`): Property purchase price or current market value.
- `rent` (number (1000 to 1000000 INR/month), default `20000`): Monthly rental income.
- `tax` (number (0 to 1000000 INR/year), default `0`): Annual property tax.
- `maintenance` (number (0 to 1000000 INR/year), default `0`): Annual maintenance or society charges.
- `insurance` (number (0 to 500000 INR/year), default `0`): Annual property insurance premium.
- `vacancy` (number (0 to 100 %), default `0`): Percentage of the year the property is expected to sit vacant.

Example: https://awesomecalcs.com/rental-yield-calculator?price=5000000&rent=20000&tax=8000&maintenance=12000&insurance=3000&vacancy=5

## Example scenarios

- [Rental Yield: 50 Lakh Property, 20,000 Monthly Rent](https://awesomecalcs.com/llms/rental-yield-calculator/5000000-property-20000-monthly-rent)
- [Rental Yield: 30 Lakh Property, 18,000 Monthly Rent](https://awesomecalcs.com/llms/rental-yield-calculator/3000000-property-18000-monthly-rent)
- [Rental Yield: 1.5 Crore Property, 45,000 Monthly Rent](https://awesomecalcs.com/llms/rental-yield-calculator/15000000-property-45000-monthly-rent)
- [Rental Yield: 40 Lakh Property with Full Operating Expenses](https://awesomecalcs.com/llms/rental-yield-calculator/4000000-property-fully-expensed)
- [Rental Yield: 60 Lakh Property with High Vacancy](https://awesomecalcs.com/llms/rental-yield-calculator/6000000-property-high-vacancy)

## Frequently asked questions

### What is rental yield?

Rental yield is the annual rental income from a property, shown as a percentage of what the property cost. It tells you how hard your money is working as a rental investment, separate from any gain or loss in the property's own price.

### What is the difference between gross and net rental yield?

Gross yield is just annual rent divided by purchase price: quick to calculate, but ignores what it actually costs to hold the property. Net yield subtracts property tax, maintenance or society charges, and insurance first, so it's a more realistic picture of what you actually keep.

### What counts as a good rental yield in India?

Residential rental yields in most Indian cities typically fall between 2% and 4%, since property prices have risen faster than rents in many markets. Commercial properties usually yield higher, often 6% to 10%, but come with different risks like longer vacancy periods and tenant turnover costs.

### Why include a vacancy rate in the calculation?

No rental property is occupied 100% of the time between tenants, especially during turnover, renovation, or off-season for holiday lets. Setting a vacancy rate (say 5-8% for a typical residential property) gives you a more honest annual rent figure than assuming the property is always occupied.

### Does rental yield account for loan EMI payments?

No, this calculator compares rental income against the property's purchase price, not against how you financed it. If you took a home loan to buy the property, your actual cash return will be lower once EMI payments are factored in separately.

### Should I compare rental yield across different cities or localities?

Yes, this is one of the most useful ways to use rental yield. Two properties can look similarly priced but have very different rent-generating potential, so comparing yields across localities helps you spot where rental income better justifies the purchase price.