Rental Yield Calculator
Calculate gross and net rental yield on a property from annual rent, property value and expenses.
Formula last reviewed 4 August 2026 · How we verify our calculators
Gross rental yield
- Net rental yield
- 4.3%
Updates live as you type
Frequently asked questions
Rental yield is annual rent as a percentage of the property’s value. Gross yield ignores costs; net yield subtracts expenses for a truer return.
Gross yield = (annual rent ÷ property value) × 100. ₹3,00,000 rent on a ₹60,00,000 property is a 5% gross yield.
Maintenance, property tax, insurance, repairs, and management or society charges. Subtracting these from rent before dividing gives net yield.
Residential yields are often modest at around 2–4%, while commercial property can yield more. Investors also count on capital appreciation, not yield alone.
Measure your property’s rental return
If you own or are eyeing a property to let, rental yield tells you how hard your money works each year. This calculator shows both the gross and net yield so you see the headline and the reality.
Enter the annual rent, the property value, and your annual expenses — maintenance, property tax, insurance, repairs and society charges. Gross yield is rent ÷ value × 100; net yield subtracts expenses first, which is the figure that actually lands in your pocket.
Worked example
At the defaults — a ₹60,00,000 property renting for ₹3,00,000 a year, with ₹40,000 in annual expenses — gross yield is 3,00,000 ÷ 60,00,000 × 100 = a clean 5%. Net yield instead uses (3,00,000 − 40,000) ÷ 60,00,000 × 100 = 2,60,000 ÷ 60,00,000 × 100 = 4.33% — a noticeably lower figure once real running costs are subtracted. That roughly 0.67-percentage-point gap between gross and net is exactly why gross yield alone, quoted by brokers, tends to overstate what a landlord actually keeps.
Yields put properties on a comparable footing regardless of their price tag, and flag overpriced assets where the rent on offer is low relative to the purchase value being asked. Bear in mind that Indian residential yields are often modest, commonly in the 2–4% range, with many investors relying on capital appreciation over the years rather than rental yield alone to justify the purchase — a low yield is not automatically a bad investment if the location has strong price-growth prospects.
Use it to compare investment options on a like-for-like basis and to sanity-check whether the quoted rent genuinely justifies the asking price for a property you are considering. Combine it with the property tax calculator to refine your expense figure with an accurate annual tax estimate rather than a rough guess.