What is a good rental yield in India?

In Indian metros like Bengaluru, a gross rental yield of 3-5% is typical. Yields above 6% are considered excellent. Peripheral locations and commercial properties often offer higher yields than prime residential areas.

How is rental yield calculated?

Gross rental yield = (Annual Rent / Property Purchase Price) × 100. For example, if a property costs ₹50 lakhs and earns ₹20,000/month rent, the yield is (₹2,40,000 / ₹50,00,000) × 100 = 4.8%.

What is the difference between gross and net rental yield?

Gross yield uses only purchase price and annual rent. Net yield also deducts expenses like maintenance, property tax, insurance, vacancy periods, and repairs, giving a more accurate picture of actual returns.

Is rental yield better than FD returns?

While FD rates in India are around 6-7%, property investments also offer capital appreciation (5-10% annually in growing areas). Combined rental yield + appreciation often outperforms FDs over long periods.

Rental Yield Calculator

Investment . Returns

Calculate the rental yield of your property investment instantly.

Evaluate your property's rental return by comparing annual rent against property price. Get a quick assessment of whether your investment is yielding excellent, moderate, or low returns.

Rental Yield %Annual RentROI AssessmentXLS ReportShareable LinkRental Yield %Annual RentROI AssessmentXLS ReportShareable Link

Scope - Residential | Commercial | All Property Types

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Property Details

Property Price

₹

₹5 Lakh₹20 Crore

Monthly Rent

₹

₹1K₹5L

Rental Yield

4.80%

gross annual yield

Annual Rent₹2,40,000

Property Price₹50,00,000

Monthly Rent₹20,000

Moderate yield. Consider negotiating for better rental terms.

Your Rental Yield vs Other Investment Returns (Annual %)

Note: Property also offers capital appreciation (5-10% annually) in addition to rental yield. FD/Gold/Nifty returns are long-term averages.

What is Rental Yield?

Rental yield measures the return on a property investment through rent. It is calculated as Rental Yield = (Annual Rent / Property Price) x 100. A yield of 3-5% is typical in Indian metros like Bengaluru, while 6%+ is considered excellent. This is a gross yield calculation -- net yield would also account for maintenance, vacancy, insurance, and property taxes.