Rental Yield Calculator

Rental yield tells you how much a property actually earns each year compared to what you paid for it -- separate from any price appreciation. Indian investors often compare properties using price per square foot alone, which hides the real cash return. This calculator works out your gross yield, net yield, cap rate and, if you used a loan, cash-on-cash return, from the purchase price, extra buying costs, monthly rent, vacancy, maintenance and property tax you enter. Nothing you type is sent anywhere -- the calculation runs in your browser.

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What counts as a good rental yield in Indian cities

Gross rental yield varies sharply by city in India. Global Property Guide put the national average gross yield at 5.16% in Q2 2026, but the spread between cities is wide. Mumbai, where prices have risen fastest, averaged only 3.84% -- prime pockets like Bandra and Juhu often sit closer to 2.5-3%, because rents haven't kept pace with purchase prices. Delhi's broader market showed a higher potential yield of 5.81%, though the Gurgaon and Noida corridors most buyers actually shop in typically run closer to 3-4.5%. Tier-2 cities such as Indore, Jaipur, Nagpur and Coimbatore tend to sit higher still -- NoBroker cites a 4-7% range for tier-2 markets against roughly 2-3% in the metros, because entry prices are 30-50% lower relative to the rent those homes command. If your own calculation below lands well outside these ranges for your city, it's worth double-checking your rent and price inputs before treating the number as a red flag.

Gross yield vs net yield -- a worked example

Take a flat priced at Rs 80,00,000 with Rs 4,00,000 in stamp duty, registration and brokerage -- a fairly typical 5% in many Indian states -- renting for Rs 28,000 a month. Annual rent is Rs 3,36,000. Divide that by the price alone and you get a gross yield of 4.2%; divide it by price plus buying costs (Rs 84,00,000) and gross yield drops to 4.0% -- buying costs always pull gross yield down once you count them. Now subtract running costs: Rs 18,000 a year in maintenance, Rs 9,000 in property tax, and a 4% vacancy allowance (Rs 13,440), leaving net operating income of Rs 2,95,560. Divide that by the full acquisition cost (Rs 84,00,000) and net yield comes out at 3.52%. Divide the same net operating income by the purchase price alone (Rs 80,00,000, the standard cap-rate definition) and you get 3.69% -- the two numbers differ because cap rate ignores what you paid to acquire the property, net yield doesn't.

Frequently asked questions

What's considered a good rental yield in India?

It depends heavily on the city. Metro markets like Mumbai average under 4% gross, Delhi's headline number is closer to 5.8% (though the corridors most buyers shop in run lower), and tier-2 cities such as Indore, Jaipur and Nagpur often reach 4-7% because prices are lower relative to rent. Above 5% net is generally considered strong -- run your own numbers above rather than relying on a city-wide average.

Should I include my home loan EMI in gross or net yield?

No -- gross and net yield measure the property's own performance regardless of how you financed it. If you took a loan, enter your down payment and annual EMI in the cash-on-cash section instead; that's the number that reflects what your own money is actually earning.

Does stamp duty count toward the yield?

Yes -- enter stamp duty, registration and brokerage together as your extra purchase costs. They raise your total acquisition cost, which lowers gross and net yield (though not cap rate, which is based on the purchase price alone) -- leaving them out overstates your real return.

Why does cap rate come out different from net yield here?

Cap rate divides net operating income by the purchase price alone; net yield divides it by the purchase price plus buying costs. They're the same number only when buying costs are zero -- in India, where stamp duty and registration typically add 5-7%, net yield is almost always the lower, more honest figure.