Source: https://awesomecalcs.com/rental-yield-calculator/3000000-property-18000-monthly-rent
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: 30 Lakh Property, 18,000 Monthly Rent

> A high-yield tier-2 city apartment: 30 lakh purchase price against 18,000 monthly rent, with typical expenses and vacancy.

Interactive calculator: https://awesomecalcs.com/rental-yield-calculator/3000000-property-18000-monthly-rent

Keywords: rental yield tier 2 city, rental yield 30 lakh property

## Scenario inputs

```json
{
  "inputs": {
    "purchasePrice": 3000000,
    "monthlyRent": 18000,
    "propertyTaxAnnual": 8000,
    "maintenanceAnnual": 12000,
    "insuranceAnnual": 3000,
    "vacancyRatePercent": 5
  }
}
```

## 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.

## Frequently asked questions

### Why do smaller cities often show higher rental yields?

Property prices in tier-2 and tier-3 cities have generally grown slower than in metros, while rents have kept pace with local income growth, which pushes the rent-to-price ratio, and so the yield, higher.