Rental Yield Calculator

Rental Yield Calculator
Calculate Your Property’s Rental Return Instantly

Investing in real estate isn’t just about property appreciation; rental income plays a crucial role in building steady wealth. But how do you know if your property is giving you good returns?

That’s where Housivity’s Rental Yield Calculator comes in.

It helps you instantly calculate your property’s rental yield, the percentage return you earn annually from rental income compared to the property’s value.

Whether you’re a first-time investor, a landlord managing multiple properties, or a tenant comparing rents, this calculator gives you a clear picture of how profitable your property investment truly is.

What is Rental Yield?

Rental yield is the annual return (in percentage) you earn from your property through rent. It shows how effectively your property generates income relative to its cost or market value.

In simpler terms, rental yield answers one big question:“How much profit am I earning every year from my property’s rent?”

Why Rental Yield Matters in Real Estate

Understanding rental yield helps you make smarter investment decisions.

Here’s why it’s important:

Compare properties: Identify which investment gives better returns.
Track performance: Check if your current rent is below or above the market average.
Plan investments: Decide whether to rent, sell, or upgrade your property.
Benchmark ROI: Real estate investors use it like stock traders use returns on equity.

In India, the average residential rental yield ranges between 2% to 4%, while commercial properties can offer 6% to 9% or more, depending on location and demand.

Rental Yield Formula

The basic formula for calculating rental yield is:

Rental Yield (%) =

\[\frac{Annual\ Rent \ Income}{Property\ Value} \times 100\]

Example:

Suppose your flat is worth ₹80,00,000 and you earn ₹25,000 per month in rent.

Annual Rent = ₹25,000 × 12 = ₹3,00,000

Property Value = ₹80,00,000

Rental Yield =

\[\frac{3,00,000}{80,00,000} \times 100 = 3.75\%\]

👉 Your rental yield is 3.75%, which is considered average for a residential property in India.

Gross vs Net Rental Yield

There are two types of rental yield you should know:

1. Gross Rental Yield

It’s the total annual rent divided by property value, without considering any expenses.Use this when you just want a quick idea of overall returns.

Formula:

Gross Yield (%) =

\[\frac{Annual\ Rent}{Property\ Value} \times 100\]

2. Net Rental Yield

It gives a more accurate result by deducting expenses like maintenance, property tax, and insurance.

Formula:

Net Yield (%) =

\[\frac{(Annual\ Rent - Annual\ Expenses)}{Property\ Value} \times 100\]

This shows your true earning percentage from the property.

Example: Net Rental Yield Calculation

Let’s take an example of a 2 BHK flat in Ahmedabad:

Property Value: ₹70,00,000
Monthly Rent: ₹20,000
Annual Maintenance & Taxes: ₹30,000

Annual Rent = ₹20,000 × 12 = ₹2,40,000

Net Rent = ₹2,40,000 – ₹30,000 = ₹2,10,000

Net Yield =

\[\frac{2,10,000}{70,00,000} \times 100 = 3\%\]

Net Rental Yield = 3%

Rental Yield Table (For Reference)

Property Value (₹)	Monthly Rent (₹)	Annual Rent (₹)	Yield (%)
40,00,000	10,000	1,20,000	3.0%
50,00,000	15,000	1,80,000	3.6%
60,00,000	20,000	2,40,000	4.0%
70,00,000	25,000	3,00,000	4.3%
80,00,000	30,000	3,60,000	4.5%
1,00,00,000	35,000	4,20,000	4.2%

Use this table to quickly estimate how much yield your property might generate.

How to Use Housivity’s Rental Yield Calculator

Enter Property Value – Add the current market value or purchase price of your property.
Enter Monthly Rent – Input how much rent you receive every month.
Add Expenses (Optional) – Enter maintenance, tax, or insurance costs for accurate results.
Click Calculate – The tool instantly displays your rental yield percentage.

That’s it. You get a clear snapshot of your property’s earning potential in just seconds.

What is a Good Rental Yield in India?

Rental yield depends on the type of property, city, and demand.

Property Type	Average Rental Yield (India)
Residential (Flats, Apartments)	2% – 4%
Commercial (Shops, Offices)	6% – 9%
Co-living / Student Housing	7% – 10%
Luxury Apartments	2% – 3%

Tip: Always aim for a yield higher than inflation (around 5% in India) to ensure positive real returns.

How to Improve Your Property’s Rental Yield

Here are some proven ways to boost your rental yield in India:

Upgrade Interiors – Modern lighting, modular kitchens, and quality furnishing attract higher rent.
Choose Prime Locations – Properties near business hubs, metro stations, or schools get better rental value.
Short-Term Rentals – Airbnb or serviced apartments can increase monthly returns.
Maintain Regularly – Well-maintained properties retain tenants and reduce vacancy periods.
Negotiate Smartly – Increment rent periodically (usually 5–10% per year) as per agreement.

Residential vs Commercial Rental Yield

Residential Yield: Lower but stable. Ideal for long-term investors.
Commercial Yield: Higher returns but may involve higher vacancy risk and maintenance.

If your goal is monthly cash flow, commercial properties are generally more rewarding.

Benefits of Using Housivity’s Rental Yield Calculator

Quick and accurate rental return calculation.
Works for both residential and commercial properties.
Helps investors compare cities, localities, and projects easily.
Designed for the Indian real estate market.
100% free and mobile-friendly.

Whether you’re investing in Ahmedabad, Gandhinagar, or Surat, this calculator gives you the clarity you need to make smart property decisions.

Common Mistakes People Make While Calculating Rental Yield

Ignoring Expenses: Always include maintenance, taxes, and society charges.

Using Purchase Price Instead of Market Value: Rental yield should be based on the current market value.

Forgetting Vacancy Periods: Account for months when the property might remain empty.

Not Reviewing Rent Annually: Inflation and market rates affect yields.

Avoid these mistakes for more realistic results.

Rental Yield vs ROI – What’s the Difference?

Many investors confuse rental yield with return on investment (ROI), but they are different:

Aspect	Rental Yield	ROI
Focus	Annual rent vs property value	Total return (rent + appreciation)
Duration	Yearly	Overall holding period
Includes Property Appreciation	No	Yes
Use	Evaluate rental income	Evaluate total investment return

Use Housivity’s ROI Calculator alongside the Rental Yield Calculator to get a complete financial picture.

FAQs – Real Estate Investment Calculator

Final Thoughts

Understanding your rental yield is the foundation of smart real estate investing. It helps you know whether your property is performing well or if your capital could be better invested elsewhere.

With Housivity’s Rental Yield Calculator, you get instant, accurate, and reliable results — anytime, anywhere.

If you want to stay ahead in the Indian real estate market, use this calculator before buying or renting any property.

Try it now on Housivity.com and calculate your property’s rental yield in seconds.

Rental Yield Calculator

Total Investment

Yearly Rental Income

Gross Rental Yield

Net Rental Yield