How is rental yield calculated?

Gross Rental Yield = (Annual Rent / Property Value) × 100. Net Rental Yield = ((Annual Rent - Annual Expenses) / (Property Value + Purchase Costs)) × 100. Net yield accounts for maintenance, property tax, insurance, vacancy, and other costs.

Is rental income taxable in India?

Yes. Rental income is taxed under 'Income from House Property'. You get a standard deduction of 30% on net annual value (after municipal taxes). Interest on home loan up to ₹2L is also deductible for self-occupied property, unlimited for let-out property.

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Rental Yield Calculator

Q: What is a good rental yield in India?

In India, average rental yields range from 2-4% for residential properties. Yields above 4% are considered good. Commercial properties may offer 6-9%. Most Indian cities offer 2-3% residential yields, making property more of an appreciation play than income investment.

Calculate gross & net rental yield, analyze expenses, and compare your property returns with other investments.

📊 Gross & Net Yield 💰 Expense Analysis 📈 Investment Compare

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Property Value / Purchase Price (₹)

Monthly Rent (₹)

Registration & Stamp Duty (₹)

Furnishing / Renovation Cost (₹)

📋 Annual Expenses

Property Tax (₹/year)

Maintenance / Society (₹/year)

Insurance (₹/year)

Repairs & Painting (₹/year)

Vacancy (months/year)

Expected Appreciation (%/year)

📊 Yield Analysis

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Frequently Asked Questions

What is a good rental yield in India?

In India, average residential rental yields range from 2-4%. Yields above 4% are considered good. Commercial properties may offer 6-9%. Most metro cities like Mumbai, Delhi, Bangalore offer 2-3% residential yields.

Gross yield vs Net yield — what's the difference?

Gross yield = Annual Rent / Property Value. Net yield deducts all expenses (maintenance, tax, repairs, vacancy) and includes all purchase costs (stamp duty, registration). Net yield gives the true picture of your return.

Is rental income taxable?

Yes, rental income is taxed under 'Income from House Property'. You get a standard deduction of 30% on net annual value (after municipal taxes). Home loan interest is also deductible — up to ₹2L for self-occupied, unlimited for let-out property.