Calculate gross and net rental yield on your property. Analyse monthly cash flow, break-even rent, and compare your yield against major Indian cities.
| City | Gross Yield | Verdict |
|---|---|---|
| Mumbai | 2.0 – 3.0% | Low |
| Delhi NCR | 2.5 – 3.5% | Low–Avg |
| Bengaluru | 3.0 – 4.0% | Average |
| Pune | 3.0 – 4.5% | Average |
| Hyderabad | 3.5 – 4.5% | Good |
| Chennai | 3.0 – 4.0% | Average |
| Ahmedabad | 3.5 – 4.5% | Good |
| Your Property | — | — |
Rental yield is the annual income a property generates as a percentage of its value. In India, most residential properties yield just 2–4% gross — far lower than the 5–7% seen in western countries. After deducting maintenance, property tax, insurance, vacancy loss, and income tax on rental income, the net yield often drops to 1.5–3%. This calculator helps you see your true, after-cost rental return.
A gross yield of 3.5% or above is considered decent. Above 4% is good. Hyderabad, Pune micro-markets, and Ahmedabad tend to offer the best residential yields in India. Commercial properties (office, retail) yield 6–8% but require larger capital and have different risks.
Property prices in Mumbai and Delhi NCR have appreciated significantly over decades, but rents have not kept pace. A flat worth ₹2–3 crore in South Mumbai or Golf Course Road Gurugram may only yield ₹35,000–50,000/month — a gross yield of barely 2–2.5%. Investors speculate on capital appreciation rather than rental income.
No. A flat 30% standard deduction is available on rental income under both old and new tax regimes. In the old regime, you can additionally claim home loan interest (no cap for let-out property). Municipal tax paid is also deductible. TDS at 5% must be deducted by tenants if annual rent exceeds ₹2.4L.
Sell if: your net yield is below 2% AND you don't expect strong appreciation. Keep if: your rental income covers at least 60–70% of EMI AND you're in a high-growth micro-market. Use the Real Estate ROI Calculator to model the full 10–15 year picture before deciding.
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