Rental Yield Calculator — Know Your Property Investment Returns
Calculate gross and net rental yield on your property investment. Compare rental returns across cities and find out if your property is a good investment in 2026.
Investing in property for rental income is a popular strategy in India but few investors actually calculate whether their rental yield justifies the investment. The average rental yield in Indian metros ranges from 2-4% which is often lower than a simple FD. However when you factor in property appreciation of 5-8% annually the total returns improve significantly. Our calculator helps you compute both gross yield based on rent versus property value and net yield after deducting maintenance taxes insurance and vacancy periods.
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Key Information
| Parameter | Details |
|---|---|
| Mumbai Avg Rental Yield | 2.0% - 3.0% |
| Bangalore Avg Rental Yield | 3.0% - 4.5% |
| Delhi NCR Avg Rental Yield | 2.5% - 3.5% |
| Pune Avg Rental Yield | 3.5% - 4.5% |
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Use Calculator NowFrequently Asked Questions
What is a good rental yield in India?
A rental yield above 3% is considered decent in Indian metros. Bangalore and Pune offer better yields averaging 3.5-4.5% while Mumbai has the lowest at 2-3% due to extremely high property prices. For comparison commercial properties typically offer 6-8% rental yield but require larger investment and carry higher risk.
How do I calculate rental yield?
Gross rental yield is calculated as Annual Rent divided by Property Value multiplied by 100. For example if your flat worth Rs 50 lakh earns Rs 18000 monthly rent the annual rent is Rs 2.16 lakh giving a gross yield of 4.32%. Net yield subtracts expenses like maintenance society charges property tax insurance and vacancy loss from the annual rent before dividing.
Is rental income taxable in India?
Yes rental income is fully taxable in India under Income from House Property. However you get a standard deduction of 30% on the gross rent for repairs and maintenance without needing to show actual expenses. You can also deduct home loan interest up to Rs 2 lakh for a self-occupied property or the entire interest for a rented property.
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Last updated: 24 March 2026