Rental Yield Calculator
Gross and net yield on a property investment.
Rental yield is annual rent divided by property value. Indian residential yields typically sit at 2-4% gross, and net yield after maintenance, property tax and vacancy is usually 1.5-3% — which is why rental property competes poorly with debt instruments on income alone.
Your Inputs
Net rental yield
Gross yield
3.44%
Net annual income
₹2,27,000
How this works
Yield is only half the return
Total return on property is rental yield plus capital appreciation, minus transaction costs of roughly 8-10% on entry and 1-2% on exit. Because those costs are large and one-off, property needs a holding period of at least 7-10 years to beat liquid alternatives.
Taxation of rental income
Rent is taxed at your slab rate after a 30% standard deduction under Section 24(a) and after municipal taxes paid. Home loan interest on a let-out property is fully deductible, though set-off of house property loss against other income is capped at ₹2 lakh a year.