Rental Yield Calculator (India Real Estate)
Calculate Gross & Net Rental Yield % for apartments, villas & PGs in Mumbai, Bangalore, Hyd, etc.
Net Rental Yield (%)
3.25%
Gross Rental Yield
4.00%
Payback Period
30.8 yrs
Benchmark Comparison:
• India Residential Avg Yield: 2.5% – 3.8%
• Commercial / PG Hostel Avg Yield: 5.5% – 8.0%
Understanding Rental Yields in Indian Real Estate
Rental yield measures the annual rental income generated by a property relative to its total purchase price or market valuation. It is one of the key metrics used by real estate investors to benchmark rental property returns against fixed deposits, mutual funds, or commercial real estate.
Frequently Asked Questions (Rental Yield)
What is a good rental yield for residential property in India?
In major Indian metros (Bengaluru, Mumbai, Delhi-NCR, Pune), typical residential gross rental yield ranges between 2.5% to 4.5%. Commercial properties yield higher, around 7% to 10%.
What is the difference between Gross Rental Yield and Net Rental Yield?
Gross Rental Yield is the annual rent divided by property cost without accounting for costs. Net Rental Yield subtracts property taxes, society maintenance charges, vacancy losses, and insurance to show true net ROI.
How do maintenance costs affect net rental yield?
High society maintenance and annual repair charges directly reduce your net rental income, dropping net yield by 0.5% to 1.5% compared to gross yield.
Abdulla Harris
Verified Legal EditorBuilding Owner & Landlord Legal Specialist
Abdulla Harris is an active property owner and rental operations specialist. He leads legal and compliance editorial at TenantsFlo, focusing on Indian Rent Control Acts, Model Tenancy Act 2021 implementations, state-level stamp duty guidelines, and automated landlord workflows.