Total Return = Net Rental Yield + Property Appreciation %
Cash-on-Cash Return = (Annual Net Rent − Annual Loan EMI × 12) / Down Payment × 100
How Your Property Compares
Fixed Deposit7.0%
Nifty 50 (long-term avg)12.0%
Your Property (Total Return)0%
Yield & Return Comparison
Key Metrics
ⓘ Rental yield figures are estimates. Actual returns vary with location, tenant quality, market conditions, upkeep costs, and rent escalation. This is not investment advice.
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Frequently Asked Questions
What is a good rental yield in India? +
In India, a gross rental yield of 2–3% is common for residential apartments in metro cities, while 4–5% is considered good. Commercial properties typically yield 6–10%, much higher than residential. Cities like Bengaluru, Hyderabad, and Pune tend to offer slightly better rental yields than Mumbai or Delhi NCR, where high property prices drag yields down to 1.5–2.5%. Anything above 4% for residential property in India is considered attractive. Compare this against Fixed Deposit rates (around 7%) and remember that property also offers price appreciation on top of rental income.
What is the difference between gross and net rental yield? +
Gross rental yield is simply annual rent divided by property value, expressed as a percentage — it ignores all costs. Net rental yield subtracts actual expenses — annual maintenance, property tax, and vacancy loss (months the property sits empty) — from the annual rent before dividing by property value. Net yield always paints a more realistic picture of your actual return, and is typically 0.5–1.5% lower than gross yield. When comparing rental income to other investments like FDs or mutual funds, always use net yield, not gross yield, for an apples-to-apples comparison.
Is rental income better than FD in India? +
Purely on rental yield alone, most Indian residential properties (2–4% net yield) underperform Fixed Deposits (around 7%). However, property returns should be judged on Total Return, which adds property price appreciation (historically 5–8% p.a. in most Indian cities) to rental yield. This can push total returns to 9–12%, competitive with or better than FDs. Property also offers leverage benefits if bought with a home loan, and tax benefits on interest paid. FDs offer better liquidity and zero maintenance hassle. The right choice depends on your goals, liquidity needs, and risk appetite.
How to calculate rental yield in India? +
Gross Rental Yield = (Annual Rent ÷ Property Value) × 100. For example, a property worth ₹50 lakh earning ₹20,000 monthly rent (₹2.4 lakh annually) has a gross yield of 4.8%. Net Rental Yield subtracts annual maintenance, property tax, and vacancy loss from the annual rent first, then divides by property value. This gives a more accurate picture since a portion of your rental income goes toward upkeep and taxes rather than your pocket. Use an online calculator like the one above to compute both instantly with your exact numbers.