Rental Yield Calculator India — Is Your Property a Good Investment?
Calculate gross and net rental yield on your Indian property investment. Compare rental returns with FD SIP and other investment alternatives.
Rental yields in India are among the lowest globally averaging just 2-3.5% in major cities compared to 5-8% in the UK and US. This means a Rs 1 crore property in Mumbai generates only Rs 2-3.5 lakh annual rent or Rs 17000-29000 per month. When you factor in maintenance society charges property tax and vacancy periods the net yield drops further. Understanding true rental yield helps you make informed real estate investment decisions.
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Key Information
| Parameter | Details |
|---|---|
| Average Yield (Mumbai) | 2% - 2.5% gross |
| Average Yield (Bangalore) | 3% - 3.5% gross |
| Average Yield (Delhi NCR) | 2% - 3% gross |
| Average Yield (Pune) | 3.5% - 4% gross |
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Use Calculator NowFrequently Asked Questions
How to calculate rental yield?
Gross rental yield = (Annual rent / Property purchase price) x 100. For a Rs 80 lakh property earning Rs 25000 monthly rent: (Rs 3L / Rs 80L) x 100 = 3.75% gross yield. Net yield deducts maintenance (Rs 3000-5000/month) property tax (Rs 5000-15000/year) insurance vacancy (1 month/year) and repairs (5% of rent). Net yield is typically 1-1.5% lower than gross.
Is 3% rental yield good in India?
3% is average for Indian cities. While this seems low compared to FD returns (7%) remember that property also appreciates in value. If your property appreciates 5-6% annually total return becomes 8-9% which is competitive. However unlike FD property has maintenance costs transaction hassles illiquidity and tenant risks. For pure rental income 4%+ is considered good in India.
Rental income vs SIP which is better?
On Rs 1 crore: property gives Rs 2.5L rent + 5% appreciation = Rs 7.5L/year (7.5%). SIP at 12% on Rs 1 crore = Rs 12L/year. SIP clearly wins on returns and liquidity. However property offers leverage (buy Rs 1Cr property with Rs 20L down + Rs 80L loan) which amplifies returns. The leveraged return on your Rs 20L equity can exceed 20% when combining rental income and appreciation.
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Last updated: 24 March 2026