Rental yield calculator

How it works

Gross yield = yearly rent ÷ price × 100. Net yield = (rent for the months let − yearly costs) ÷ price × 100. Years to recover the price = price ÷ net yearly income. It leaves out loan interest, tax and any rise in the property's value.

How to use it

1. Type the property price and the monthly rent.
2. Type the yearly costs you pay, such as repairs, society charges and property tax, and the months it may stay empty.
3. Read the gross yield, net yield and years to recover the price.

Worked example

A ₹50,00,000 flat rented at ₹15,000 a month earns ₹1,80,000 a year, a gross yield of 3.6%. After ₹20,000 of yearly costs the net income is ₹1,60,000, a net yield of 3.2%, and it takes 31.25 years of rent to equal the price.

Common mistakes

• Using gross yield as if it were profit. Costs and empty months reduce it.
• Forgetting that this ignores loan interest and the rise or fall in the property's value.
• Typing the yearly rent in the monthly box. The box is for one month's rent.

Questions people ask