Rental yield calculator for India: gross and net yield
The short answer
- Gross yield = monthly rent × 12 ÷ property price × 100.
- Net yield = (rent for the months actually let − annual costs) ÷ property price × 100. This is the one that matters.
- For a flat in a big Indian city, 3–4.5% gross and 2–4% net is normal. ANAROCK's Q2 2026 city averages run from 3.2% (Delhi) to 4.6% (Bengaluru).
Put in the price, the rent and what the flat really costs you to hold — society maintenance every month, property tax once a year, repairs, and the months it sits empty — and see the return you actually keep. Add your stamp duty and registration if you want the yield on what you really paid, not just the price.
Within the usual range for Indian residential property (about 2–4% net). Normal for a flat in a major Indian city. The easy gains are in the costs and the empty months, not the rent: one month of vacancy is roughly 8% of the year's rent.
Rent needed for a 3% net yield: ₹27,273/month · for 4%: ₹34,545/month — at this price, these costs and 1 month of vacancy.
Runs entirely in your browser. Nothing is sent to us or stored. An estimate for planning, not financial or investment advice.
How to calculate rental yield: a worked example
Take a 2BHK in Bengaluru bought for ₹80,00,000 and let at ₹28,000 a month. Society maintenance is ₹3,500 a month, property tax ₹6,000 a year, and you set aside ₹12,000 a year for repairs. It sits empty for one month between tenants. (These are illustrative numbers — use your own.)
The one empty month alone cost ₹28,000 — more than half the year's maintenance bill. That is why vacancy, not the rent itself, is usually the cheapest place to find extra yield.
Rental yields in Indian cities (2026)
ANAROCK tracked average residential rental yields in India's main housing markets between 2019 and the second quarter of 2026. Yields rose alongside prices, with Bengaluru and Hyderabad improving the most:
| City | 2019 | Q2 2026 | Change (percentage points) |
|---|---|---|---|
| Bengaluru | 3.6% | 4.6% | +1.0 |
| Gurugram | 3.5% | 4.3% | +0.8 |
| Mumbai | — | 4.3% | +0.8 |
| Noida | 3.2% | 3.9% | +0.7 |
| Hyderabad | 2.6% | 3.6% | +1.0 |
| Delhi | 2.2% | 3.2% | +1.0 |
Two cautions before comparing your number with this table. Headline figures like these are usually gross — they compare rent with price and do not deduct your costs — so hold them against the gross yield the calculator shows, not the net one. And yields vary far more between localities than between cities: a city average tells you the neighbourhood you are in, not the street.
What counts as a good rental yield in India
For a flat in a major city, a net yield of roughly 2–4% is normal. That looks modest next to other fixed-income options, which is why most residential owners in India are counting on two things at once: rent that keeps the property self-funding, and a price that rises over time. Commercial units, PGs and co-living spaces run higher because they earn more rent per square foot — and they take noticeably more work to manage. None of this is investment advice; the calculator is for working out your own numbers.
Rental yield vs ROI
Rental yield is income only. Return on investment adds the change in the property's value and, if you borrowed, your loan interest and the cash you actually put in. A flat with a 3% yield and rising prices can be a good investment overall; one with a 5% yield in a stagnant market may not be. Use yield to compare the income side of properties, and look at price trends separately.
How to improve the yield on a property you already own
- Cut vacancy. Every empty month is about 8% of the year's rent. Take notice early, show the flat while the tenant is still in it, and settle the outgoing deposit quickly so the handover is clean.
- Keep rent current. A renewal clause with a fixed annual increase avoids a large catch-up later that drives a good tenant out.
- Know your real costs. Most owners underestimate repairs because they are paid irregularly. Tracking every expense against each flat is the only way to know your true net yield.
Frequently asked questions
What is rental yield?
Rental yield is the rent a property earns in a year as a percentage of its price. Gross yield uses the full annual rent. Net yield first subtracts running costs — society maintenance, property tax, repairs — and the rent lost to months the property sits empty, so it reflects what you actually keep.
How do you calculate rental yield?
Gross rental yield = (monthly rent × 12) ÷ property price × 100. Net rental yield = (monthly rent × months actually let − annual running costs) ÷ property price × 100. For example, a ₹80 lakh flat let at ₹28,000 a month has a gross yield of 4.20%; after ₹60,000 of annual costs and one empty month, the net yield is 3.10%.
What is a good rental yield in India?
For a flat in a major Indian city, a gross yield of roughly 3–4.5% and a net yield of roughly 2–4% is normal. ANAROCK's Q2 2026 city averages ranged from 3.2% in Delhi to 4.6% in Bengaluru. Yields above that usually come from commercial property, PGs or co-living, which earn more rent per square foot but need more active management.
Which Indian city has the highest rental yield?
Among the cities ANAROCK reported for Q2 2026, Bengaluru had the highest average rental yield at 4.6%, followed by Gurugram and Mumbai at 4.3%. Yields vary a great deal between localities within a city, so a city average is a starting point rather than a forecast for a particular flat.
What is the difference between gross and net rental yield?
Gross yield ignores every cost; net yield includes them. Two flats at the same price and rent can have the same gross yield but very different net yields once maintenance, property tax, repairs and vacancy are counted. Net yield is the number that tells you whether the property pays for itself.
Is rental yield the same as ROI?
No. Rental yield measures only the income a property earns relative to its price. Return on investment also counts the change in the property's value, and — if you borrowed — your loan interest and the cash you actually put in. A flat can have a modest rental yield and still a good overall return if its price rises, or the reverse.
Should stamp duty and registration be included in rental yield?
Headline yields are calculated on the price, but what you actually pay is the price plus stamp duty, registration and other buying costs. Dividing your net rent by that total gives a yield on your real outlay, which is always a little lower. The calculator shows both if you enter your buying costs.
Does a home loan change the rental yield?
Rental yield is calculated on the property's price, so it is the same whether you paid cash or borrowed. A loan changes your cash flow and your return on the money you put in, because interest is a cost and your own contribution is smaller. For the tax side of a let-out property with a home loan, see the rental income tax calculator.
Protect the yield you just calculated
Vacancy, late rent and untracked expenses are what turn a healthy yield into a mediocre one. Nestwise sends rent reminders, tracks every expense against each flat so you see your real net income, and settles move-outs cleanly so flats re-let sooner. Free while in early access.
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