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AssetsNest Investment Lab · Real Estate

Rental Yield Calculator India

Calculate gross and net rental yield after acquisition costs, vacancy, maintenance, property tax, insurance and other recurring expenses.

Editable assumptionsIndian rupeesBrowser-only inputs

Interactive model

Move from headline rent to net cash yield

Inputs stay on this device

Enter the all-in acquisition cost and the recurring expenses that a gross-yield quote leaves out.

Financing, income tax and capital appreciation are deliberately excluded so the unlevered operating yield stays visible.

Net rental yield2.1%Net income ÷ total acquisition cost
Gross rental yield3.6%Rent ÷ purchase price
Annual net income₹2.3 lakh
Expense and vacancy drag35.6%
Net income₹2.3 lakh
Vacancy + expenses₹1.3 lakh
Explain my result

The property earns ₹3.6 lakh of scheduled annual rent. After ₹18,000 of modelled vacancy and entered operating costs, net income is ₹2.3 lakh. Dividing that by ₹1.1 crore of all-in acquisition capital produces a 2.1% net yield.

Compare scenario

What this means

A property can appreciate and still produce a weak cash yield. It can also show an attractive gross rent while vacancy and maintenance consume much of the income.

Property comparisons often quote monthly rent against purchase price and omit the capital and expenses required to make the asset rentable.

Calculation method

How this tool works

Gross yield = annual rent ÷ purchase price. Net yield = annual rent after vacancy and operating expenses ÷ total acquisition cost.

The calculation separates purchase price from stamp duty, transaction costs and renovation. It excludes financing, income tax and future capital appreciation so the operating yield remains visible.

View calculation limitations

Results depend entirely on the values and scenarios entered. The model simplifies real legal, tax, liquidity, valuation and market conditions and should be used to understand relationships—not to predict an actual investment outcome.

Common mistakes

Where a correct calculation can still mislead.

  1. 01

    Using monthly rent as though it were annual rent.

  2. 02

    Excluding stamp duty, brokerage and renovation from invested capital.

  3. 03

    Ignoring vacancy and major maintenance.

  4. 04

    Adding assumed appreciation to rental yield without showing it separately.

Continue through the knowledge graph

Tools, guides and real cases connected to this result.

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Questions investors ask

Answers without the sales pitch.

What is the difference between gross and net rental yield?

Gross yield uses rent before expenses. Net yield deducts vacancy and operating costs and divides by the all-in acquisition cost.

Does this include a home loan?

No. This flagship tool isolates unlevered property economics. Loan interest, amortisation and equity IRR require a separate leveraged-property model.

Does a high rental yield mean the property is low risk?

No. It may reflect location, tenant, title, maintenance, vacancy or resale risk.

Important information

AssetsNest tools and calculations are provided solely for educational and informational purposes. Results are illustrative and depend on assumptions entered by the user. Actual performance, liquidity, fees, taxes, risks and outcomes may differ materially. Nothing on this page is investment advice, a recommendation, solicitation, assurance of returns or an offer to buy or sell any security or investment product. Investors should conduct independent due diligence and consult appropriately qualified financial, legal and tax professionals where required. AssetsNest Investor Services — ARN 318691.

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Change the assumptions. Then read the evidence.

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