Investor Tools · PIKORUA Realty
Rental Yield Calculator
Work out what an Ahmedabad property would really earn as a rental: gross yield, net yield after vacancy and owner costs, and net income per year. Use the figures for the specific property and lease you are considering.
The figures below are a hypothetical example. Replace them with the numbers for the property you are considering.
Gross yield
3%
Annual rent ÷ price
Net yield
2.02%
After vacancy and costs, on price + buying costs
Net income per year
₹4,28,000
Before income tax and loan payments
Gross vs net yield
Gross yield is quick to compare but leaves out the months a home sits empty and the costs an owner pays. Net yield is the better guide to what you keep. Two properties with the same rent can have very different net yields once maintenance, tax and buying costs are included.
Questions
What is rental yield?
Rental yield is the rent a property earns in a year as a percentage of what it cost. Gross yield uses the full annual rent and the price; net yield deducts vacancy and owner costs and divides by the price plus buying costs.
How do I calculate net rental yield?
Take the rent you expect to collect in a year after vacant months, subtract maintenance, property tax and other owner costs, then divide by the purchase price plus stamp duty, registration and other buying costs, and multiply by 100.
What is a good rental yield in Ahmedabad?
There is no single good figure: it depends on the property, the tenant, the location and your costs, and rents and prices change. Compare a property's net yield with your own alternatives after tax, and remember that no rental income is guaranteed.
Does this calculator include income tax or a home loan?
No. It shows yield before income tax and loan payments. Ask a chartered accountant how rental income would be taxed in your case, especially if you live outside India.
This calculator is a planning aid using the figures you enter. It is not investment or tax advice, and no rental income or return is guaranteed.