What is Rental Yield Calculator?
Rental Yield Calculator helps you measure a property's annual rental income against its purchase value.
The main result is net rental yield, with a breakdown of gross rental yield. The formula, example and assumptions below explain how to interpret it.
How to use Rental Yield Calculator
Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.
- Gather monthly rent received (₹), annual operating costs (₹) and property value (₹). Use values from the same situation or reporting period.
- Replace the example monthly rent received with your own value, then complete the other fields. Check the displayed units.
- Select Calculate and read net rental yield with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
- Enter monthly rent received in ₹, at least 0. Decimals are accepted.
- Enter annual operating costs in ₹, at least 0. Decimals are accepted.
- Enter property value in ₹, at least 0.01. Decimals are accepted.
Rental Yield Calculator: a worked example
With the inputs below, the result is 4 % (net rental yield). Follow the example, then replace these illustrative values with your own.
| Input or output | Example value |
|---|---|
| Monthly rent received (₹) | ₹20,000 |
| Annual operating costs (₹) | ₹40,000 |
| Property value (₹) | ₹50,00,000 |
| Net rental yield | 4 % |
| Gross rental yield | 4.8 % |
Understanding the Rental Yield result
Read net rental yield alongside gross rental yield. These describe different parts of the same calculation.
Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.
- Example Gross rental yield: 4.8 %
Rental Yield Calculator: assumptions and common mistakes
A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.
- Keep dimensions in the displayed units and distinguish usable area from built-up area. Material estimates need a suitable allowance for site conditions and waste.
For wider guidance, visit Bureau of Indian Standards. The formula and scope of this specific tool are stated on this page.
