Rental Yield Calculator
Gross and net rental yield and payback years on a property you plan to let out.
If you are buying to let, the rent matters as much as the price. Enter the price, the monthly rent, your yearly costs (maintenance, property tax, repairs) and how many months a year the property may stand empty. You get the gross yield, the net yield and how many years the net rent would take to equal the price.
Return from rent
Rent only. It ignores price growth, tax on the rent and the interest on any loan.
How it is calculated
Gross yield = yearly rent ÷ price × 100. Net income = rent for the months it is let − yearly costs. Net yield = net income ÷ price × 100. Payback years = price ÷ net income. Rent is monthly rent × 12; empty months reduce it.
A worked example
A flat bought for ₹50 lakh and let at ₹20,000 a month gives ₹2.4 lakh a year: a gross yield of 4.80%. With ₹60,000 of yearly costs and one empty month, net income is ₹1.6 Lakh and the net yield is 3.20%, a payback of about 31 years of rent alone.
Things to keep in mind
- Rental yield ignores price growth, income tax on rent and the interest on any loan.
- Use rents actually achieved for similar properties, not the rent you hope for.
Frequently asked questions
What is rental yield?
The yearly rent as a percentage of the property's price. The gross figure ignores costs; the net figure subtracts them.
What costs should I include?
Maintenance charges you pay, property tax, repairs, brokerage and any other regular cost of letting. Enter them as one yearly amount.
Why include vacant months?
Properties are not always let. A month or two without a tenant lowers the real return.
Is the yield the same as the return on investment?
No. Return also depends on how much the property's price changes, taxes and financing. The yield covers rent only.
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Free to use, no sign-up. Results are estimates for planning, not legal, tax or financial advice. How we calculate · Editorial policy · All tools