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Rental Yield Calculator

Thinking of buying to rent out? See the gross and net yield on your property and how long the rent would take to repay its price.

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Your property

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₹
₹
months
Net yearly rental income
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Gross yield-
Net yield-
Payback (rent only)-

Net income after costs and vacancy: -

Before income tax and loan interest. Rental income is not guaranteed and depends on the tenant, location and market.
Illustration only. This calculator is for general guidance. It is not an offer, quote, approval, commitment, guarantee or advice from Solaris Advisers or any lender. Results come only from the numbers you enter and the assumptions shown. Actual figures, rates, charges and eligibility are decided by your lender or the relevant authority and can change at any time.

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How rental yield is calculated

Gross yield = (monthly rent × 12) ÷ property value × 100
Net yield = (rent for occupied months − yearly costs) ÷ property value × 100

Gross yield ignores costs. Net yield is a more realistic picture because it deducts maintenance, property tax, repairs and the months the property sits vacant.

What to compare it with

  • The interest rate on any loan used to buy the property.
  • Returns from other investments you could make with the same money.
  • Possible changes in the property price over time, which are never guaranteed.

Frequently asked questions

What is rental yield?

Rental yield is the yearly rent as a percentage of the property value. Gross yield uses the full rent, while net yield deducts costs and vacancy.

What is a good rental yield?

There is no single answer, because it varies a lot by location and property type. Compare the yield with your loan interest rate and other options, and remember that rent and prices are never guaranteed.

Which costs should I include?

Property tax, society maintenance if you pay it, repairs, brokerage for finding tenants, and the months the property may be vacant.

Is the net yield after tax?

No. Income tax depends on your situation, so this calculator does not include it.

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