Source: https://awesomecalcs.com/rental-yield-calculator/4000000-property-fully-expensed
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: 40 Lakh Property with Full Operating Expenses

> See how property tax, maintenance, and insurance together pull gross yield down to a more realistic net yield on a 40 lakh property.

Interactive calculator: https://awesomecalcs.com/rental-yield-calculator/4000000-property-fully-expensed

Keywords: net rental yield calculator, rental yield after expenses

## Scenario inputs

```json
{
  "inputs": {
    "purchasePrice": 4000000,
    "monthlyRent": 22000,
    "propertyTaxAnnual": 5000,
    "maintenanceAnnual": 6000,
    "insuranceAnnual": 2000,
    "vacancyRatePercent": 0
  }
}
```

## 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

### How much do operating expenses typically eat into gross yield?

For a typical Indian residential property, property tax, maintenance, and insurance combined usually reduce gross yield by 0.3 to 0.8 percentage points, though this varies by city and society charges.