Rental Yield Calculator India (2026): Gross vs Net ROI

Analyze property profitability with professional-grade yield metrics.

Rental Yield is the percentage return an investor earns on a property annually, relative to its market value. In India, residential rental yields typically vary, while commercial properties can offer significantly higher returns.

This calculator helps you distinguish between Gross Yield (total rent received) and Net Yield (rent after maintenance, property tax, insurance, and vacancy), ensuring you make an informed real estate investment decision.

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Gross Rental Yield

6.00%

Before annual expenses

Net Rental Yield

5.60%

After all annual expenses

Yield Strategy Guide

A net rental yield of 2-3% is standard for residential properties in major Indian cities. Commercial properties often yield 6-9%. If your net yield is below 2%, consider evaluating your maintenance costs or property appreciation potential to justify the investment.

Rental Yield is the percentage return an investor earns on a property annually, relative to its market value. In India, residential rental yields typically vary, while commercial properties can offer significantly higher returns.

This calculator helps you distinguish between Gross Yield (total rent received) and Net Yield (rent after maintenance, property tax, insurance, and vacancy), ensuring you make an informed real estate investment decision.

How to Calculate Real Estate Yields

To find your true return on investment, we follow a two-step mathematical approach.

  • 1. Gross Rental Yield: (Annual Rent / Property Value) × 100.
  • 2. Net Rental Yield: ([Annual Rent - Annual Expenses] / Property Value) × 100.
  • 3. Expenses: Include monthly maintenance societies, annual property tax, insurance, and a provision for vacancy.

Example: Property Yield Analysis

You buy a property for ₹1 Crore and rent it for monthly income.

Gross Annual Rent: Calculated instantly
Annual Expenses: Factor in maintenance and tax

Gross Yield: Standard market rate
Net Yield: True ROI after costs

If you take a loan at current interest rates, this property has a 'Negative Carry', meaning you are losing money every month even with a high-paying tenant.

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Frequently Asked Questions

What is a good rental yield in India?

In the Indian context, for residential properties, a net yield of 3% or higher is considered good. For commercial properties (offices, warehouses), a yield of 8% to 11% is the benchmark. However, investors also look at capital appreciation (growth in property price) over time.

Why should I use Net Yield instead of Gross Yield?

Gross yield is deceptive as it ignores the costs of ownership. Maintenance charges in large societies, vacancy periods between tenants, and annual property taxes can reduce your actual earnings by 10% to 20%. Net Yield tells you how much cash is actually staying in your pocket.

How does vacancy impact my rental yield?

Property experts recommend factoring in a 5% to 8% vacancy rate (roughly 1 month per year) where the property remains unrented. If your property is vacant for 3 months, your annual yield drops by 25%.

Are rental yields higher in commercial or residential real estate?

Commercial real estate almost always offers significantly higher rental yields (7-10%) compared to residential property (2-4%). However, commercial investments require much higher capital outlay and carry higher vacancy risks during economic downturns.

⚠️ Disclaimer

The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.

MH

Verified Contributor

Verified Methodology

Rental Yield Calculator India (2026): Gross vs Net ROI analyzed by Mahavir Hirani

This calculator is audited against the May 2026 Fiscal Cycle and follows deterministic math protocols. All financial models are verified for accuracy under SEBI and RBI standard guidelines. For logic queries, reach out via the Author Page.

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