Free property investment planning tool
Rental yield calculator
Calculate gross and net rental yield after allowing for the vacancy and recurring expenses you enter.
Illustrative vacancy and expense comparison
Net yield changes when assumptions change
Each example uses ₹20,000 monthly rent and a ₹50 lakh investment. These scenarios are arithmetic examples, not market forecasts.
How to use the calculator
Compare properties on the same basis
- 01Enter the expected monthly rent
Use the rent for the exact property and scenario being compared.
- 02Allow for vacancy
Enter the number of unrented months you want the annual estimate to include.
- 03Add annual recurring expenses
Use the recurring costs you want deducted from effective annual rent.
- 04Use a consistent investment basis
Enter the total investment figure and keep its definition consistent across every property comparison.
Calculation method
How gross and net rental yield are calculated
Gross yield uses twelve months of rent. Net yield first deducts the entered vacancy and annual recurring expenses.
Show the formulas
- Gross annual rent = monthly rent × 12
- Rent after vacancy = monthly rent × (12 - entered vacancy months)
- Net annual income = rent after vacancy - entered annual expenses
- Gross or net yield = relevant annual amount ÷ total investment × 100
Common questions
Rental yield calculator FAQs
Clear answers about gross yield, net yield, vacancy, recurring expenses and the limits of the result.
What is the difference between gross and net rental yield?
Gross yield compares twelve months of rent with the entered investment. Net yield first reduces rent for the vacancy and annual recurring expenses you enter.
What should I enter as total cash investment?
Use the complete investment amount relevant to the comparison you are making. Keep the same definition when comparing multiple properties, and document what you included.
How should I estimate vacancy?
Enter the number of unrented months you want the scenario to allow for in one year. Use zero only when you intentionally want a full-occupancy scenario.
Which annual expenses should I include?
Include the recurring ownership and operating costs relevant to your comparison. Use checked amounts and the same expense categories when comparing properties.
Can net rental yield be negative?
Yes. When entered vacancy and annual expenses exceed the effective rent, the calculator shows negative net income and a negative net yield.
Does rental yield show the complete investment return?
No. It does not predict rent changes, resale value, capital appreciation, financing cost, tax impact or unexpected repairs. It is one planning measure from the inputs entered.
After the calculation