Rental Yield CalculatorIndia 2026 — Gross and Net Yield

A rental yield of 4–6% is considered good in India. Major metros typically yield 2–4% while emerging areas like Kokapet in Hyderabad yield 6.8%. Net yield (after expenses and vacancy) is a more realistic indicator.

Gross yield = Annual Rent ÷ Property Price × 100. Net yield deducts vacancy loss, maintenance, property tax and management fees. Net yield gives a more accurate picture of actual income after all property expenses.

Vacancy factor accounts for months when the property is unoccupied between tenants. A typical 5% vacancy means the property may be empty for about 18 days per year. Higher vacancy in oversupplied areas significantly reduces effective yield.

Commercial properties and studio apartments typically yield higher rent relative to price. 1BHK apartments in well-connected areas offer better yield than larger 3BHK units. Location and connectivity matter more than size for rental demand.

In most Indian cities, rental escalation of 5–10% annually is standard in lease agreements. Some states have tenant protection laws limiting increases. Reviewing rent at the time of lease renewal (typically annual) is common practice.