Rental Yield Calculator India 2026
Calculate gross and net rental yield, monthly cash flow, and payback period for any Indian residential property. Benchmarks for all 7 major cities included.
City rental yield benchmarks — 2026
Yields below are gross yield ranges for well-located residential apartments. Net yields run 0.6–1.0 percentage points lower after maintenance and property tax.
| City / Belt | Gross Yield | Net Yield | Key Localities |
|---|---|---|---|
| Bangalore (IT belt) | 3.2–4.1% | 2.4–3.2% | Whitefield, Sarjapur, Electronic City |
| Hyderabad (West) | 3.5–4.5% | 2.6–3.4% | Gachibowli, Kondapur, Kokapet |
| Pune (IT belt) | 3.0–4.0% | 2.2–3.1% | Baner, Wakad, Hinjewadi |
| Mumbai (Western) | 2.0–3.0% | 1.4–2.2% | Lowest yield, highest capital values |
| Gurgaon (NCR) | 2.5–3.5% | 1.8–2.6% | Golf Course Road, NH-48 |
| Chennai (OMR) | 3.5–4.5% | 2.6–3.4% | OMR, Perungudi, Sholinganallur |
| Noida (Sectors 150+) | 2.8–3.8% | 2.0–2.8% | Expressway belt |
Yield data based on 2025–2026 transaction and rental listings. Actual yields vary by unit size, floor, furnishing, and hyper-local demand.
How rental yield is calculated
Two formulas matter:
Gross Yield = (Monthly Rent × 12) ÷ Property Value × 100
Net Yield = (Annual Rent − Maintenance − Property Tax) ÷ Property Value × 100
Gross yield is the headline number. Net yield is what you actually earn. In Indian metros, annual maintenance for a 2BHK runs ₹24,000–60,000 and property tax ₹3,000–15,000, shrinking gross yield by 0.5–1.2 percentage points.
The payback period (property value ÷ net annual income) tells you how many years of rent it takes to recover your purchase price — ignoring capital appreciation. At 3% net yield, payback is 33 years. The Brickplot Yield Potential axis (Axis 9) uses this metric alongside projected appreciation to score investment viability.
Frequently asked questions
What is a good rental yield in India?
3.5–4.5% gross is generally considered a good rental yield for Indian residential property. Below 2.5% suggests the investment thesis depends almost entirely on capital appreciation rather than income. IT-corridor cities (Hyderabad, Bangalore, Chennai OMR) currently offer the best yields.
What is the difference between gross and net rental yield?
Gross rental yield = (Annual Rent ÷ Property Value) × 100. Net rental yield deducts annual maintenance charges and property tax before dividing. Net yield is the economically meaningful number — gross yield overstates returns by ignoring recurring costs that run ₹20,000–60,000/year in most apartments.
How is rental income taxed in India?
Rental income is taxed under "Income from House Property." A standard deduction of 30% of net annual value is allowed. The remaining 70% is added to your taxable income and taxed at your slab. Municipal taxes paid are also deductible. Home loan interest on a let-out property is fully deductible (no ₹2L cap that applies to self-occupied).
Does the Brickplot score include rental yield?
Yes. Axis 9 of the Brickplot 11-axis score is "Yield Potential" — it weights the area's historical gross rental yield, proximity to employment nodes, and tenant profile. See /score for the full rubric.
What is the rental yield in Bangalore in 2026?
IT belt localities (Whitefield, Sarjapur, Electronic City, Bellandur) typically command 3.2–4.1% gross yield. Peripheral localities like Devanahalli or Anekal run lower at 2.5–3.2%. Prime residential areas like Indiranagar or Koramangala compress to 2.0–2.8% gross due to high capital values.
Rental yield vs appreciation — which matters more?
Depends on your investment horizon. If buying for 5–7+ years, capital appreciation typically swamps rental income in Indian metros. If buying for steady income (e.g., NRI parking funds), target a minimum 3% net yield. Many investors in Mumbai make the mistake of accepting 1.5% yield expecting appreciation to compensate — a thesis that has worked but is not guaranteed.
How can I increase rental yield on my property?
Furnish the apartment (fully furnished units command 15–25% rental premium, especially for IT expat demand). Choose a smaller unit in a high-demand locality — ₹60L 1BHK in Whitefield often yields more than ₹1.2Cr 3BHK in the same project. Keep vacancy low by pricing slightly below market for long tenancies.
Can NRIs earn rental income from Indian property?
Yes. NRIs can rent out residential or commercial property in India. Rental income is credited to NRO account. Tax is deducted at source by tenant at 30% if annual rent exceeds ₹2.4L. NRI can claim a refund for excess TDS via ITR. Repatriation is allowed up to USD 1 million/year from NRO after tax compliance.