Formula
Gross Yield = Annual Rent / Property Cost x 100. Net Yield adjusts for vacancy and maintenance.
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Calculator Guide
How Rental Yield Is Calculated
Learn gross and net rental yield calculations and how vacancy plus maintenance change real returns.
Example Calculation
- Property Cost: Rs 80 Lakh
- Monthly Rent: Rs 35,000
- Vacancy: 5%
Net rental yield typically ranges from 2.8% to 4.5% in many urban markets
Investment Insights
- High appreciation zones may have lower rental yield but stronger capital upside.
- Vacancy stress testing improves decision quality before purchase.
- Net yield should be compared with financing costs and tax outflow.
FAQs
What is a good rental yield in India?
It depends on location and asset class, but many residential markets range around 2-4% net yield.
Should I use gross or net yield?
Net yield is better for investment decisions because it accounts for real operating costs.
Can low yield still be a good investment?
Yes, if long-term appreciation and liquidity prospects are strong in that micro-market.