Rental yield calculator

What counts as a good yield in India

Residential yields in Indian metros are low by global standards — typically 2–4% gross in Mumbai, Delhi NCR and Bengaluru, occasionally 4–5% in Pune, Hyderabad and Chennai suburbs where prices are lower relative to rents. Commercial property does considerably better, usually 6–9% for a well-let office or shop, which is why pre-leased commercial units are marketed on yield rather than price.

Gross yield is annual rent divided by price. Net yield subtracts what ownership actually costs: society maintenance, property tax, periodic repainting and repairs, brokerage on each new tenant, and the months the flat sits empty between tenants. Those items typically eat a fifth to a quarter of the gross rent, which is why a 3.5% gross yield often lands closer to 2.6% net.

Yield is only half the return

Indian residential buyers have historically earned more from price appreciation than from rent, which is exactly why yields are compressed — people pay for expected capital gains. If you are buying purely for income, compare the net yield against a fixed deposit or a debt fund after tax, and remember rental income is taxed at slab rates after a 30% standard deduction under Section 24(a), while the interest on a let-out property's loan is deductible.

Improving the number

Furnishing a flat near an IT corridor can lift rent 15–25% and shorten vacancy. A longer lease with a modest annual escalation beats chasing the top rent and re-letting every 11 months once brokerage and empty months are counted. And check the society's rules before buying to let — some housing societies in Mumbai and Bengaluru restrict short lets or charge non-occupancy charges to landlords.