What is a good rental yield in India?

Residential rental yields in most Indian cities are modest, typically around 2 to 4 percent gross. Commercial property and some emerging areas can yield more. Net yield, after maintenance, tax and vacancy, is always lower than gross.

How is rental yield calculated?

Gross rental yield is annual rent divided by the property's purchase price, as a percentage. Net rental yield subtracts yearly costs such as maintenance, property tax, insurance and expected vacancy before dividing by the price.

Why is gross yield higher than net yield?

Gross yield ignores running costs. Net yield deducts maintenance, society charges, property tax, insurance and the rent lost during vacant months, giving a truer picture of what you actually earn.

Rental Yield Calculator (India)

Gross vs net — and why it matters

Two properties can show the same gross yield and earn very differently once costs are in. Society maintenance, property tax, insurance, repairs and the months a flat sits empty all eat into the return — so a serious investor judges on net yield, not the rent-to-price headline.

Gross yield = annual rent ÷ price × 100. Net yield = (annual rent − yearly costs − vacancy loss) ÷ price × 100.

In most Indian residential markets, gross yields sit in the low single digits, which is why appreciation and the rent-vs-buy maths matter as much as yield. If you're weighing buying to live in versus renting, the rent vs buy calculator brings appreciation and opportunity cost into the picture; to value the loan side, use the EMI calculator.

Frequently asked questions

What counts as a good yield in India?

For residential property, a gross yield around 3–4% is fairly typical; higher is good. Commercial and some emerging micro-markets can do better. Always compare net, not gross.

Should yield include the loan?

Yield measures the property's earning power against its price, independent of how you finance it. To judge leveraged returns, also look at cash flow after EMI — your rent minus EMI minus costs.

What vacancy allowance should I use?

Even well-located homes sit empty between tenants. A 5–8% allowance (roughly half a month to a month a year) is a sensible starting point; raise it for harder-to-let properties.

Rental Yield Calculator

The investment

Gross vs net — and why it matters

Frequently asked questions