Calculate the gross and net rental returns on your residential real estate. Compare yields across major Indian cities with local area benchmarks and evaluate real estate gains against FDs and equity mutual funds.
Property Parameters
(2.16 Cr)
~7% of value (15.12 L)
Rent & Running Expenses
Annual Rent: ā¹5,04,000
Have you taken a Home Loan?
Integrate interest payments into cash flow calculations
Net Yield (Post-Tax)1.56%Rent net of maintenance, taxes
Total Annual Return11.56%Net Yield + 10% appreciation
Calculation Breakdown
Slab: 30%
Purchase Investment
Property Purchase Price
ā¹2,16,00,000
+ Registration & Stamp Duty
ā¹15,12,000
+ Renovation & Interiors
ā¹2,00,000
Total Property Investment
ā¹2,33,12,000
Annual Income & Costs
Gross Annual Rental Income
ā¹5,04,000
- Annual Maintenance & Society
(ā¹24,000)
- Annual Property Tax
(ā¹12,000)
- Income Tax on Rent(70% of NAV taxed at 30%)
(ā¹1,03,320)
Net Pre-Tax Rental Yield
2.01%
Net Post-Tax Rental Yield
1.56%
Net Monthly Cash Flow
ā¹30,390/mo
Is This Property Worth Buying?
Compare your estimated net rental yield and property appreciation against standard Indian investment classes.
Value of ā¹50 Lakhs after 10 Years
Asset Class
Return Rate
Final Wealth
Your Property (Net Yield Only)
1.56%
58.40 L
Your Property (Yield + Appreciation)
11.56%
1.49 Cr
Bank FD (5yr)
7.00%
98.36 L
Debt Mutual Fund
8.50%
1.13 Cr
Equity SIP (10yr avg)
13.00%
1.70 Cr
NPS (Tier 1)
10.50%
1.36 Cr
š” Wealth Math Verdict
Strong Investment. Your property return of 11.56% outperforms debt funds, FDs, and NPS retirement funds (10.5%). This is a solid wealth compounder.
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Gross Yield vs Net Yield ā Which Should You Use?
Gross Rental Yield = (Annual Rent / Property Value) Ć 100. It is the quick headline number. Net Rental Yield deducts all annual costs before dividing: [(Annual Rent - Maintenance - Property Tax - Vacancy Loss) / Property Value] Ć 100. In India, the gap between gross and net yield is typically 0.5ā1.5 percentage points. A property with a 4.5% gross yield might only deliver 3.0ā3.5% net, especially in societies with high monthly maintenance charges (ā¹5,000āā¹15,000/month in premium gated communities). Always use net yield for actual investment decisions.
Which Indian Cities Give the Best Rental Yield in 2026?
As of Q2 2026, Hyderabad leads with a national-high average gross yield of 5.5%, particularly in Hitech City and Kondapur where IT demand keeps occupancy rates above 95%. Pune follows at 4.35%, driven by IT corridors in Kharadi and Hinjewadi. Mumbai averages 4.15% though prime areas like Bandra and Juhu are closer to 2.5ā3.0% due to extremely high property prices relative to rents. Bangalore averages 3.6%. Delhi NCR trails at 3.2%, with Greater Noida seeing the sharpest rent declines in 2025-26. The national average gross yield is 5.16%.
Property vs SIP ā Where Should You Invest in 2026?
Real estate total return = Rental Yield + Capital Appreciation. At Hyderabad's current 5.5% yield + 8% appreciation, total return is approximately 13.5% ā competitive with equity SIPs. However, real estate requires a large lump-sum investment (ā¹50Lāā¹2Cr), has low liquidity (takes months to sell), and involves transaction costs of 7ā9% on purchase. Equity SIPs require as little as ā¹500/month, are fully liquid within 3 business days, and have delivered 12ā15% average annual returns over 15+ year periods. Both belong in a balanced Indian investor's portfolio ā property for stability and rental income, SIPs for liquidity and compounding.