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Rental Yield Calculator

Gross and net yield on a commercial property, after purchase costs, vacancy and yearly outgoings.

Property

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Stamp duty, registration, brokerage, interiors — your total
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Property tax, maintenance, insurance

Yield

Net rental yield
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  • Gross yield —
  • Rent received in a year —
  • Net income a year —
  • Net income a month —
  • Payback period —
Before income tax and loan interest.

Results are estimates for information only — not tax, legal or financial advice. Check your lease and consult a qualified professional before acting. See our Terms.

Gross vs net rental yield

Gross yield = Annual rent ÷ Purchase price × 100
Net yield = (Rent actually received − Yearly outgoings) ÷ (Purchase price + Purchase costs) × 100

Gross yield is the headline number in listings. Net yield is what you actually earn: it allows for months without a tenant, property tax, maintenance and insurance, and counts stamp duty, registration and brokerage as part of what you invested.

Example

A ₹2 crore office let at ₹1,20,000 a month has a gross yield of 7.2%. With ₹14 lakh of purchase costs, one vacant month a year and ₹1.5 lakh of yearly outgoings, the net yield is about 5.5%.

Improving the yield

Frequently asked questions

What is a good rental yield for commercial property in India?

Commercial property usually yields more than residential. Yields vary widely by city, location, tenant quality and lease length, so compare against similar properties in the same micro-market.

Does rental yield include income tax?

No. This calculator shows yield before income tax and loan interest; your actual return depends on how the income is taxed and financed.

Why add purchase costs?

Stamp duty, registration and brokerage are part of what you paid to own the property, so net yield divides by the total amount invested, not only the price.

Keep your yield on track

LeaseHub360 bills escalations on time, tracks dues and warns you before leases expire.

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