What is Rental Yield?
Rental Yield is the percentage return an investor earns from renting out a property compared to the property's total purchase price. In India, residential rental yields typically hover around an abysmal 2% to 3%, while commercial properties can offer 6% to 8%.
Rental Yield Formula
Gross Rental Yield = (Annual Rent / Property Value) × 100
Our Rental Yield Calculator factors in property taxes, maintenance costs, and vacant months to give you your Net Rental Yield. If your net rental yield is lower than an FD interest rate (7%), it's a strong indicator that the property might be overvalued unless heavy capital appreciation is expected.