Rental Yield Calculator India: Is Your Property Worth Renting Out?
Find the gross and net rental yield on any Indian property after expenses, vacancy and rental income tax, then compare it with FD, PPF and market returns. Free and private.
Last updated: June 2026
Annual expenses
Rental yield
- Gross rental yield
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- Net rental yield
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๐ Your yield vs alternatives
- FD (best rate): ~7-8% ยท FD calculator
- PPF: 7.1% ยท PPF calculator
- Sensex 10-yr average: ~12%
Typical gross rental yields by city (2026 estimates)
| City | Typical gross yield |
|---|---|
| Mumbai | 2-3% |
| Delhi NCR | 2.5-3.5% |
| Bangalore | 3-4% |
| Hyderabad | 3.5-4.5% |
| Pune | 3-4% |
| Chennai | 3-4% |
| Tier-2 cities | 4-6% |
โ ๏ธ Rental yields vary significantly by location, property type and market conditions. Verify locally before investing.
The number every landlord should check first
Before you buy a flat to rent out, one number tells you whether the rent justifies the price: the rental yield. This rental yield calculator shows both the headline gross yield and the more honest net yield after expenses, vacancy and tax. Enter the property value, the monthly rent and your running costs, and you get a clear percentage you can compare against any other investment.
Gross yield is simply your yearly rent as a percentage of the property's value. Net yield is what actually matters, because it strips out maintenance, property tax, society charges, insurance, the months the flat sits empty, and the income tax you pay on rent. Rental income gets a flat 30% standard deduction under Section 24, which this tool applies before taxing the rest at your slab. The gap between gross and net is often larger than first-time landlords expect.
Here is the reality check Indian residential property forces on you: net yields of 2-4% are normal, while a fixed deposit pays 7-8% and PPF 7.1% with no tenants, no repairs and no vacancy. That does not make property a bad investment, but it does mean you are relying on the price going up, not the rent, to win. Weigh it carefully with our rent vs buy calculator and the rent vs buy guide before committing.
Financial Disclaimer: Rental yields shown are approximate 2026 estimates based on industry data. Actual yields vary significantly by location, property type, age and market conditions. This is not investment advice. Verify locally and consult an advisor. Full disclaimer.
How it works
Three quick steps โ no account, nothing uploaded to a server.
Enter price and rent
Add the property value and the monthly rent you receive.
Add your costs
Enter maintenance, taxes, society charges, vacancy and your tax slab.
See gross and net yield
Get both yields plus a comparison with FD, PPF and market returns.
Housing market context for this page is available from the National Housing Bank (RESIDEX housing price index). Last checked July 2026.
FAQ
Frequently asked questions
What is a good rental yield in India?
Residential rental yields in India are modest compared with many other countries. Gross yields of 2-3% are common in Mumbai and Delhi NCR, 3-4% in Bangalore, Pune and Chennai, and 4-6% in tier-2 cities. After expenses, vacancy and rental income tax, the net yield is usually lower. A net yield above 4% is strong for Indian residential property; many investors accept lower yields because they expect capital appreciation rather than rental income.
What is the difference between gross and net rental yield?
Gross rental yield is your annual rent divided by the property value, expressed as a percentage. It ignores all costs. Net rental yield subtracts the real costs of owning the property, such as maintenance, property tax, society charges, insurance, expected vacancy and the income tax on your rent, before dividing by the property value. Net yield is the figure that actually reflects what lands in your pocket, so it is the better number for comparing investments.
How is rental income taxed in India?
Rental income is taxed under 'Income from House Property'. You first deduct any municipal taxes you paid, then a flat 30% standard deduction under Section 24 to cover repairs and upkeep, regardless of what you actually spent. The remaining amount is added to your income and taxed at your slab rate. You can also deduct home loan interest under Section 24(b). This calculator applies the 30% standard deduction and your chosen slab to estimate the tax.
Should I compare rental yield with FD or PPF returns?
Yes, it is a useful sanity check. A fixed deposit currently returns around 7-8% and PPF 7.1%, both with far less effort and risk than being a landlord. If your net rental yield is only 2-3%, you are betting on the property's price rising to beat those safer returns. Property can deliver strong total returns through appreciation, but on rental income alone it often trails fixed-income options, which is worth weighing before you buy to let.
Do rental yields change by location and over time?
Very much so. Yields depend heavily on the city, the micro-market, the property type and age, and current market conditions. A flat in a premium area can have a low yield because the price is high relative to rent, while an affordable flat in a tier-2 city can yield more. Yields also shift as property prices and rents move. Treat the city benchmarks here as rough 2026 estimates and verify with local listings.
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