Work out gross and net rental yield on a property from its price, monthly rent and annual running costs.
Gross rental yield = (annual rent ÷ property price) × 100. Net rental yield subtracts annual expenses (maintenance, property tax, insurance, society charges) from rent before dividing by price — a more realistic picture of actual return.
This doesn't account for vacancy periods, loan interest, or capital appreciation — treat it as one input among several when comparing properties.
It varies heavily by city and property type, but 2–4% gross is typical for Indian residential property, while 6%+ is generally considered strong. Commercial property often yields higher.
Net yield accounts for the real costs of owning the property — maintenance, property tax, insurance and society/association charges — which gross yield ignores.
No — this calculates yield on the property's value, not your equity or financing cost. Use the EMI calculator alongside this to see your actual cash-flow position.