How this calculator works
- Step 1Rent for a year₹3,00,000.0012 × monthly rent.
- Step 2Gross yield3.75%Divided by the price.
- Step 3Net income₹2,35,000.00Less empty months and yearly costs.
- Step 4Net yield2.75%Divided by price plus purchase costs.
Rental yield is a year’s rent as a percentage of what the property cost. Gross yield uses the rent alone. Net yield takes off the months the home stands empty and the costs you pay as owner, and adds the one-time cost of buying.
Worked example: an ₹80 lakh flat let at ₹25,000
- Gross
12 × rent ÷ price- Net
(rent collected − yearly costs) ÷ (price + purchase costs)
- 12 × ₹25,000 ÷ ₹80,00,0003.75%
- Rent collected, 11 months₹2,75,000.00
- Less ₹40,000 yearly costs₹2,35,000.00
- Invested: ₹80 lakh + ₹5.6 lakh₹85,60,000.00
- Net yield2.75%
What moves the yield
Gross versus net
- Gross yield3.75%What listings usually quote.
- Net yield2.75%Closer to what you actually earn.
Yield is income only; it says nothing about whether the property’s price rises or falls.
Related property tools
Yield measures a rented home's income. Buying, borrowing and growth are separate questions.
To compare buying with renting, use the rent vs buy calculator. The EMI calculator gives the loan payment, and the ROI calculator the total return if you sell.
Common mistakes
Mistake: Comparing gross yield with an FD rate.
Instead: Use net yield, and compare after tax on both.
Mistake: Counting the EMI as a cost.
Instead: Keep financing separate; yield measures the property itself.
Mistake: Assuming the home is never empty.
Instead: Allow a month or more between tenants.
Methodology and sources
A separate script walks one year month by month in exact fractions and checks every gross and net yield.
Yield is income divided by price, the same ratio OpenStax’s Principles of Finance defines as dividend yield, applied here to rent. Figures are estimates, not advice. The review date and financial disclaimer follow.
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