Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Calculate gross rental yield, net yield, operating cash flow and appreciation-assisted total return.
Measure property yield
Appreciation is uncertain and should not hide weak operating cash flow.
Gross rental yield
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Net operating yield
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Measure
Result
Net operating income
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Cash flow after financing interest
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Illustrative return including appreciation
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How This Is Calculated
Rental yield measures the annual rental income as a percentage of property value. This calculator computes net operating income (gross annual rent, less an assumed vacancy allowance and operating expenses) and expresses it as a percentage of property value — a more realistic figure than simply dividing gross rent by price, since it accounts for periods the property may sit vacant and ongoing costs.
Frequently Asked Questions
What is a good rental yield in India?
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Residential rental yields in most Indian cities typically range from about 2% to 4%, which is low compared to many other countries — Indian real estate returns have historically leaned more on capital appreciation than rental income. Commercial property yields tend to run higher.
What is the difference between gross yield and net yield?
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Gross yield divides annual rent by property price, ignoring costs. Net yield (what this calculator computes) subtracts a vacancy allowance and operating expenses (maintenance, property tax, etc.) first, giving a more realistic picture of what the property actually returns after real-world costs.
Is rental income taxed the same way regardless of yield?
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Rental income taxation doesn't depend on yield — it's computed separately under house property income rules (net annual value, 30% standard deduction, home loan interest). See the site's House Property Income Calculator for the actual tax computation.
Gross rental yield, net rental yield and cash-on-cash return answer different questions. Net yield should deduct recurring property-level costs; financing cost belongs in leveraged/cash-on-cash analysis rather than gross property yield.
Compare properties using the same valuation date, vacancy assumption, maintenance/tax basis and transaction-cost treatment. The calculator is an investment metric, not an income-tax computation.
Input integrity
Use source documents rather than approximate memory.
Confirm period, units, tax regime/category and sign conventions.
Test zero, threshold and just-above-threshold cases where relevant.
Output interpretation
Separate arithmetic output from legal eligibility/classification.
Preserve assumptions and the official-source date.
Use the linked detailed guide for exceptions and evidence.
Net rental yield = ((Annual rent − Annual operating costs such as maintenance, property tax and insurance) ÷ Property purchase price) × 100.
Where a loan is entered, also compute cash-on-cash return using the down payment as the invested capital base.
Inputs and assumptions
Property purchase price is taken as the all-in acquisition cost if the user includes stamp duty/registration in the entered figure; otherwise it reflects only the stated purchase price.
Operating costs are whatever the user enters — the calculator does not assume a default maintenance percentage unless specified.
Exclusions and edge cases
Does not model vacancy periods, rent escalation, or capital appreciation — this is a point-in-time yield calculation, not a multi-year return projection.
Income tax on rental income is not netted out of the yield figures shown.
Sources
No external regulatory source applies — this is a general financial formula, not a statutory computation.
Review status: reviewed and approved by CA Nikhil Gupta on 16 July 2026.
Guides that use this calculator
Background, worked examples and the rules behind these numbers.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.