Rental Yield Calculator India — FY 2025-26
Calculate gross and net rental yield on your investment property. Compare property returns vs equity mutual funds. Check if your rent is fair against city average yield benchmarks for Mumbai, Delhi, Bengaluru, Hyderabad, and 10+ Indian cities.
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How to Use This Calculator
Rental Yield tab
Enter your property value, monthly rent, monthly maintenance (society charges + repairs), and annual property tax. Expand "More options" to set vacancy months and acquisition cost percentage. The calculator instantly shows gross yield, net yield, annual income, and price-to-rent ratio.
Rent vs Invest tab
Enter the investment amount, your net yield, expected capital appreciation, equity MF return, and time horizon. The calculator produces a year-by-year comparison table showing total property returns (appreciation + cumulative rent) vs equity MF corpus. Find the break-even capital appreciation rate — the appreciation needed for property to match equity MF.
Is My Rent Fair? tab
Enter property value, current rent, and select your city. The calculator compares your actual gross yield against city-average yield benchmarks and shows a fair rent range (±20% of city average). Use this to decide whether to raise rent at renewal or to assess value-for-money as a tenant.
Share your result
All inputs are encoded in the URL. Click Share to send your exact yield calculation to a property advisor or family member, or bookmark it for comparison over time.
The Formula
Gross Yield = (Effective Annual Rent ÷ Property Value) × 100
Effective Annual Rent = Monthly Rent × 12 × (1 − Vacancy Months ÷ 12)
Net Rental Yield:
Annual Expenses = (Monthly Maintenance × 12) + Annual Property Tax
Net Income = Effective Annual Rent − Annual Expenses
Total Investment = Property Value + Acquisition Costs
Acquisition Costs = Property Value × Acquisition % (stamp duty + registration + brokerage)
Net Yield = (Net Income ÷ Total Investment) × 100
Price-to-Rent Ratio:
P/R Ratio = Property Value ÷ Effective Annual Rent
(India metros: 25–35×. Below 20× = landlord-favourable. Above 35× = tenant-favourable.)
Total Property Return:
Total Return = Net Rental Yield + Capital Appreciation Rate
Break-Even Appreciation (vs equity MF):
Break-Even Appreciation = Target MF Return − Net Rental Yield
Worked Example
Rahul — 2BHK apartment in Bengaluru, purchased for &rupee;80,00,000
Rahul (42) owns a 2BHK apartment in Bengaluru's Whitefield area. He bought it for &rupee;80 lakh and rents it out at &rupee;22,000/month. Society maintenance + repairs come to &rupee;3,000/month. Property tax is &rupee;15,000/year. The property stays vacant for 1 month per year on average.
Step 1: Effective Annual Rent
Step 2: Gross Yield
Step 3: Annual Expenses
Step 4: Net Yield (including acquisition costs)
Verdict: Gross: &rupee;2.42L/&rupee;80L = 3.0%. Net after expenses = 2.2%. To match a 12% equity MF, Rahul needs capital appreciation of 9.8%/year — challenging but possible in a strong micro-market over 10+ years. At 5% appreciation, total property return = 7.2% vs MF 12%.
City-wise Rental Yield Benchmarks (FY 2025-26)
Typical gross rental yields for residential property by city. Net yield will be 0.5–1.5 percentage points lower after expenses and acquisition costs.
Metro cities (2–3.5% gross yield)
| City | Gross Yield | P/R Ratio | Notes |
|---|---|---|---|
| Mumbai | 1.5–2.5% | 40–67× | Lowest yield in India. South Mumbai <1.5%. Navi Mumbai/Thane: 2.5%+. |
| Delhi-NCR | 2.5–3.2% | 31–40× | Noida and Greater Noida offer higher yields than South Delhi. |
| Bengaluru | 2.8–3.5% | 29–36× | Whitefield, Sarjapur, Electronic City: 3–3.5%. Best metro yield. |
| Hyderabad | 2.8–3.2% | 31–36× | Gachibowli, Kondapur, HITEC City: strong IT rental demand. |
| Chennai | 2.5–3.2% | 31–40× | OMR (IT Corridor), Porur, Perambur: decent yields. |
| Pune | 2.8–3.5% | 29–36× | Hinjewadi, Baner, Kharadi: IT/MNC corridor, strong demand. |
Tier-2 cities (3.5–5% gross yield)
| City | Gross Yield | P/R Ratio | Notes |
|---|---|---|---|
| Ahmedabad | 3.3–4% | 25–30× | More landlord-friendly P/R ratio vs metros. |
| Jaipur | 3.5–4.2% | 24–29× | Relatively affordable property prices; decent rental demand. |
| Coimbatore | 4–5% | 20–25× | One of the highest yielding cities among emerging Tier-2 markets. |
| Kochi | 3–3.8% | 26–33× | Strong NRI demand; Kakkanad IT corridor. |
| Lucknow | 3.8–4.5% | 22–26× | Growing administrative capital; affordable prices. |
Understanding the price-to-rent (P/R) ratio
The price-to-rent ratio = property value ÷ annual rent. It is the inverse of gross yield and tells you how many years of rent it takes to recover the property price at current rent levels.
- P/R below 20×: Landlord-favourable. Rent is high relative to price. Good for buy-to-let investors.
- P/R 20–30×: Balanced market. Common in Tier-2 cities.
- P/R 30–40×: Tenant-favourable. Typical for Indian metros. Rental income alone may not justify purchase.
- P/R above 40×: Very high. Buying is premised almost entirely on capital appreciation. Mumbai south and premium Delhi fall here.
Expenses that reduce net yield
Investors frequently underestimate ongoing costs, turning a 3% gross yield into a 1.5% net yield:
- Society maintenance: &rupee;3,000–15,000/month depending on amenities (gym, pool, security).
- Property tax: 0.1–0.5% of property value per year (varies by city/municipal body).
- Repairs and painting: Budget 5–10% of annual rent per year averaged over the property's life.
- Insurance: Home insurance costs &rupee;2,000–5,000/year for a typical 2BHK.
- Vacancy: 1–2 months/year is typical in most Indian cities.
- Brokerage on tenancy: 1 month's rent to broker every 1–2 years when tenant changes.
- Income tax on rent: Rental income is taxed under "Income from House Property" at your marginal slab rate after 30% standard deduction (Section 24(a)).