NRI rental yield calculator

Short answer: Rental yield is annual rent divided by property value. Gross yields in Indian metros typically run 2 to 4 percent; net yield, after maintenance, property tax, and management fees, is lower. This tool computes both for your property.

Every listing quotes a yield. Almost none quote the one that matters. Gross yield is annual rent over price, the number that sells the flat. Net yield is what lands on your capital after the manager takes a cut, the flat sits empty between tenants, and the society, tax, and repair bills get paid.

This calculator shows both, side by side, so you can judge an India flat the way you would judge any other asset: on what it actually returns, not what the brochure claims.

What it does

Gross yield and net yield, both on the property value
The cost stack that separates them: management fee, vacancy, running costs
How much of the headline yield survives, as a share
A downloadable report you can set against a deposit or index return

Gross yield is the pitch. Net yield is the truth

A broker sells a flat on its gross yield: annual rent over price. It is the flattering number, and it is the one that ignores everything between the tenant's payment and your account. Net yield is what the capital actually earns after the management fee, the empty weeks, and the running costs. For an NRI managing from abroad, the gap between the two is wider than for a resident, because distance adds cost.

This calculator shows both, on your numbers, and the share of the headline yield that survives. Enter the property's price and rent, add the cost stack, and read the net figure. That is the number to compare against a fixed deposit or an index fund, not the gross.

What the cost stack does to a metro yield

Indian metros run low gross rental yields to begin with, commonly 2 to 4 percent, because prices have outrun rents for years. Start at, say, a 3.5 percent gross yield and watch the stack work:

Management fee of 8 to 12 percent of collected rent.
Vacancy of a few weeks a year, every year, between tenants.
Repairs, society dues, property tax, and insurance, the running costs of keeping the flat lettable.

Net of those, a 3.5 percent gross yield often lands near 2.3 to 2.8 percent net. That is the honest return on the capital tied up in the flat, and it is why the buy-versus-invest question is real for NRIs. The full operating picture, rupee for rupee, is in the cost-of-managing calculator.

Yield is only half the return

A low net yield does not mean a bad investment. Indian residential property has historically earned more from capital appreciation than from rent, so the total return is yield plus price growth. The trap is treating the flat as an income asset when it is mostly an appreciation asset with a thin income leg. Know which you are buying.

For an NRI there is a third factor the resident does not face: if the rupee weakens against the currency you save in, both the yield and the appreciation shrink when measured in your home currency. The rent-versus-buy calculator puts that currency effect against the whole ownership case.

Using net yield to run the property harder

The value of the net number is that it points at the leaks. A yield that drops sharply from gross to net is usually telling you one of three things: the management fee is high for what it delivers, vacancy is running long because the asking rent is above the market, or the running costs are heavy for the building. Each is fixable. A fee tied to collected rent, a rent set to let fast, and a manager who keeps the flat occupied can move the net yield up without touching the price. That is the whole case for running the property properly rather than leaving it to drift.

Where 66 MG Road fits

We run the lines this calculator asks you to estimate: a fee on collected rent, vacancy kept short with active letting, repairs handled without markup, and rent paid on time to your NRO account, with dated proof throughout. The net yield is the number we are paid to protect. We run property with our own teams in Delhi NCR and Bangalore. A Property Health Check or Watch covers the rest of India through vetted local partners. See the services or request a proposal.

Common questions

What is a good rental yield in India?

Gross rental yields in Indian metros commonly run 2 to 4 percent, which is low because prices have outpaced rents. Net of management, vacancy, and running costs, the figure is lower still, often around 2 to 3 percent. Residential property in India tends to earn more from appreciation than from rent, so judge the total return, not the yield alone.

What is the difference between gross and net rental yield?

Gross yield is annual rent divided by the property price. Net yield subtracts the costs of earning that rent, the management fee, vacancy between tenants, repairs, society dues, property tax, and insurance, before dividing by the price. Net yield is the real return on the capital; gross is the headline.

How do I calculate net rental yield?

Take the annual rent, subtract vacancy loss, the management fee, and annual running costs to get net operating income, then divide by the property price. This calculator does it from your inputs and shows how much of the gross yield survives the cost stack.

Does currency affect an NRI's rental yield?

Yes, in effect. The rent is earned in rupees. If the rupee weakens against the currency you live and save in, the yield and any appreciation are worth less when converted home. The rent-versus-buy calculator models that currency drag across the whole ownership case.

How accurate is this yield calculator?

It applies your own numbers to a standard gross-and-net yield model and shows the retention between them. It stops at net operating income, before income tax and the Section 195 rent withholding, which are separate calculations. Use it to compare a property against other uses of the same capital.

More free tools

NRI rent vs buy calculator — Measured in the currency you actually live in.
Rent, sell or hold calculator — Three paths from one flat, priced on the same horizon.
NRI home loan EMI & eligibility calculator — What the loan costs, and how much you can get.