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Home > Income Tax > Help Center > Rental Yield Calculator Last Updated: Feb 20th 2025

Rental Yield Calculator

Utilize rental yield calculator to assess rental property profitability. It calculates rental yield, which is annual rental income as a % of property value. Also consider bank interest on the rental income for a more accurate measure.

It is simple yet critical factor to consider prior to purchasing a property.

Rental Yield Calculator from EZTax
   Rental Yield Calculator
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Property Tax, Maintenance, Insurance, Repairs etc
Enter vacancy rate below 100 %
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Gross Rental Yield :
{{grsRental}} %
Net Rental Yield :
{{netRental}} %
Payback Period :
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Rent Yield Analysis

  1. While {{netRental}}% is the rental yield from your property, you also need to consider the appreciation of property in future.
  2. While the appreciation depends on "location, location, location" and few other market conditions, the appreciation in India is around 8-10% per year. The total yield including capital appreciation will be around {{totalNetRental1.toLocaleString("en-IN")}} % - {{totalNetRental2.toLocaleString("en-IN")}} % per annum for your property.
  3. The real estate can be a potentially lucrative long-term investment depending on location of property. A location that is highly sought after today may not remain desirable in the future due to shifts in infrastructure, economic growth, and urban planning. Therefore, careful research and long-term foresight are essential when investing in property.
  4. Other factors needs to be considered while investing in property are Inflation, Liquidity, Rental Demand & Vacancy Risk, Interest rate impact on loans, Tax Benefits & Implications

Next Steps:

  1. Check other calculators from EZTax at Personal Finance & Money Calculators
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Refer Frequently asked Questions (FAQs) on Rental Yield Calculator below.

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Frequently asked Questions

1.What is Rental Yield Calculator?

The EZTax Rental Yield Calculator is a tool that assists investors in calculating the return on a rental property by considering factors such as rent and expenses. The Rental Yield Calculator takes into account Vacancy; however, it does not account for potential future fluctuations in rental income and expenses.

2.What does Gross Rental yield mean?

Gross Rental Yield measures a property's annual rental income return on investment. It is the property's annual rental income as a percentage of its purchase price. Gross Rental Yield ignores costs.

3.What is Net rental Yield means?

The actual rental property return is net rental yield. After expenses, a property's net rental yield is its annual return on investment. Net annual rental revenue as a percentage of property purchase price.

4.What is Payback period ?

Pay back term is the years needed to recover the investment. Shorter payback periods make investments more appealing. The payback period depends on location, expenses, etc.

5.What is a Good Rental yield?

Good rental yields depend on location, property type, and market conditions. A 4-6% residential rental yield is good.

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Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.