Rental Yield Calculator
Estimate rental yield from property price and rental income.
Assumptions used in this calculation
- Vacancy not separately modelled: Annual rent is calculated as monthly rent × 12, assuming full occupancy all year. If you expect vacancy periods, reduce the monthly rent input accordingly or add expected vacancy loss to annual expenses.
- Rent held constant: Assumes the monthly rent stays the same for the full year, no mid-year increases.
About this calculator
Comparing two rental properties by price alone, or by rent alone, misses the relationship between them, a cheaper property renting for less can easily be the worse investment once you look at return relative to capital tied up. This calculator takes property value, monthly rent and annual expenses (maintenance, property tax, insurance) to compute both gross rental yield (annual rent as a percentage of property value) and net rental yield, which subtracts annual expenses first for a more realistic figure. Annualizing rent, converting to a percentage, and subtracting expenses correctly is simple arithmetic but easy to fumble or skip when comparing several listings quickly, and skipping the expense deduction specifically tends to overstate a property's real return. Feeding in three numbers gives you a single comparable percentage across any properties, regardless of their price point.
Worked example
₹60L property, ₹25,000/month rent, ₹30,000 annual expenses
Result: Net yield ≈ 4.5%
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