Rental Yield Calculator
Calculate gross and net rental yield on your investment property. Compare with FD and equity returns to decide if buying to rent makes financial sense.
Rental Yield Calculator
Gross and net rental yield vs FD and equity benchmarks
Net yield excludes income tax on rental income and capital appreciation. Residential rental yield in India typically ranges 2–3.5%.
Indian residential property delivers a gross rental yield of 2–3.5% in metros — well below FD rates of 7–7.5%. Net yield after maintenance, vacancy, and property tax drops to 1.5–2.5%. This means rental income alone rarely justifies buying residential property. The investment case for property depends almost entirely on capital appreciation — which makes it speculative. Commercial property (office, shops) typically yields 5–9% gross.
Rental Yield Calculator — Is Your Property a Good Investment?
Rental yield measures the annual return from rental income as a percentage of the property's value. Indian residential properties typically yield 2–3.5% gross, which is significantly below FD rates of 7–7.5%. The investment case for residential property must therefore rely substantially on capital appreciation, making it a long-term and somewhat speculative investment compared to liquid fixed-income alternatives.