Rental yield calculator: gross and net yield on a flat or house in India
By Giridhar Reddy, founder of Domvio, Bengaluru
Published
Gross rental yield is a year's rent divided by the property price. Net rental yield first takes off the owner's costs and the months the home stands empty. A Whitefield 2BHK priced at ₹1.085 crore and let for ₹38,000 a month yields 4.2% gross. After ₹63,000 of yearly costs and one empty month, it yields about 3.3% net.
Rental yield calculator
Enter the price, the monthly rent and what you pay as the owner. The calculator shows the gross and net yield with the working, and how the net yield falls if the home stays empty for longer. The figures already filled in are the Whitefield example below.
This calculator needs JavaScript. To work it out by hand: gross yield = monthly rent × 12 ÷ price × 100. Net yield = (monthly rent × months let − maintenance × 12 − property tax − insurance − other costs) ÷ price × 100. For ₹38,000 rent on a ₹1,08,50,000 flat: gross = 4,56,000 ÷ 1,08,50,000 = 4.20%. With ₹4,000 maintenance a month, ₹12,000 property tax, ₹3,000 insurance and one empty month: net = (4,18,000 − 63,000) ÷ 1,08,50,000 = 3.27%.
A free calculator, not investment advice
The yield tells you what the rent earns on the price. It leaves out income tax, home loan interest and any rise or fall in the property's value. Nothing you type leaves your phone or computer.
How do you calculate rental yield?
Gross yield: rent for a year ÷ price
Multiply the monthly rent by 12 and divide by the price you paid, or what the home would sell for today. ₹38,000 × 12 = ₹4,56,000. ₹4,56,000 ÷ ₹1,08,50,000 = 4.20%.
Take off the months it stands empty
If the home is empty for one month between tenants, you collect 11 months of rent: ₹38,000 × 11 = ₹4,18,000.
Take off what you pay as the owner
Society maintenance for all 12 months (you pay it while the home is empty too), property tax, insurance, and repairs or a broker's fee if you had them.
Net yield: what is left ÷ what you put in
Divide the net income by the price. If you want the return on all the money you put in, add stamp duty, registration and interiors to the price first.
| Line | Working | Amount |
|---|---|---|
| Price | ₹10,850 a sq ft × 1,000 sq ft | ₹1,08,50,000 |
| Monthly rent | Midpoint of ₹30,000 to ₹46,000 | ₹38,000 |
| Rent for a full year | ₹38,000 × 12 | ₹4,56,000 |
| Gross yield | ₹4,56,000 ÷ ₹1,08,50,000 | 4.20% |
| Rent collected, one month empty | ₹38,000 × 11 | ₹4,18,000 |
| Maintenance (example) | ₹4,000 × 12 | ₹48,000 |
| Property tax and insurance (example) | ₹12,000 + ₹3,000 | ₹15,000 |
| Net income | ₹4,18,000 − ₹48,000 − ₹15,000 | ₹3,55,000 |
| Net yield | ₹3,55,000 ÷ ₹1,08,50,000 | 3.27% |
Source for the price and rent: ANAROCK, Bengaluru Residential Market Viewpoints, Q2 2026. ANAROCK quotes the average asking rent for a 1,000 sq ft 2BHK as a range, and the average quoted base price per sq ft on super built-up area. The base price leaves out GST, parking and other charges, so the price you actually pay is usually higher and the yield on it a little lower.
Gross rental yield in Bengaluru by area
| Micro-market | Monthly rent | Price (1,000 sq ft) | Gross yield |
|---|---|---|---|
| Mysore Road | ₹23,000 | ₹80,40,000 | 3.43% |
| Thanisandra Main Road | ₹35,000 | ₹1,03,00,000 | 4.08% |
| Electronic City | ₹25,500 | ₹74,50,000 | 4.11% |
| Sarjapur Road | ₹39,750 | ₹1,15,60,000 | 4.13% |
| Whitefield | ₹38,000 | ₹1,08,50,000 | 4.20% |
Across these five areas the gross yield sits between about 3.4% and 4.2%. Asking rents and asking prices both move, and a single flat can be well above or below its area's average, so put your own figures into the calculator.
Gross or net yield: which one should you look at?
- Gross yield is quick and is what brokers and listings usually quote. Use it to compare two flats or two areas on the same footing.
- Net yield is what you actually earn. In the Whitefield example it is about one percentage point lower than the gross yield, because of one empty month and ₹63,000 of yearly costs.
- Empty months matter most. Each empty month takes off a twelfth of the year's rent, while maintenance carries on. In the example, three empty months bring the net yield down from 3.27% to 2.57%.
- Who pays maintenance changes the answer. If your tenant pays the society maintenance, enter 0 for it and the net yield rises.
How to raise the net yield on a rented flat
- Shorten the gap between tenants. Ask for notice in the rent agreement, start showing the flat during the notice period, and record the flat's condition at move-out with a move-in and move-out checklist so the deposit settlement does not drag on.
- Revise the rent on renewal. A small increase every 11 months keeps the rent in line with the area. The rent increase calculator shows what each percentage adds.
- Collect every month on time. A month of unpaid rent costs you as much as an empty month. See how to collect rent online and what to do when a tenant is not paying rent.
Rent on time, every month
Domvio sends your tenant a WhatsApp reminder three days before rent is due, with the exact amount and a UPI link to your own account, and a PDF receipt for every payment you confirm. You see who has paid across all your properties. It is free during early access. See the rent collection app.
If you let the flat, Domvio collects the rent on WhatsApp: a reminder three days before the due date, a UPI link to your own account and a PDF receipt for every payment. Free during early access.
Try Domvio freeFrequently asked questions
What is a good rental yield in India?
There is no fixed figure; compare it with what the same money would earn elsewhere, such as a fixed deposit. From ANAROCK's Q2 2026 figures, gross yields on a 2BHK in five Bengaluru areas range from about 3.4% to 4.2%.
How do I calculate rental yield on a flat?
Multiply the monthly rent by 12 and divide by the price, then multiply by 100. ₹38,000 a month on a ₹1,08,50,000 flat is 4,56,000 ÷ 1,08,50,000 = 4.20% gross. Take off costs and empty months for the net yield.
What is the difference between gross and net rental yield?
Gross yield uses the full year's rent. Net yield takes off the months the home is empty and the owner's costs, such as maintenance, property tax and insurance, so it is always lower.
Should I include stamp duty and registration in the price?
For the return on all the money you put in, yes: add stamp duty, registration and interiors to the price. The calculator has an optional field for these buying costs.
Is rental yield calculated before or after tax?
This calculator works before income tax and home loan interest, which depend on your own situation. Ask a chartered accountant how your rental income is taxed.
Does Domvio calculate rental yield?
No. Domvio collects the rent: WhatsApp reminders with a UPI link to your own account, one-tap cash logging and a PDF receipt for every payment. Use this free calculator for the yield.
Stop chasing rent every month
Domvio reminds your tenants on WhatsApp, takes rent straight to your UPI ID and sends PDF receipts automatically. Free during early access.