How do you use the net rental yield calculator?
- Enter the property price and monthly rent, the share of rent you expect to lose to empty months, and the owner’s yearly costs: maintenance, property tax, and insurance and repairs.
- New flat or resale, a target net yield and the stamp duty and registration rates are under “Adjust rates and target yield”.
- Read the net yield on the price and on the total cost, and the rent needed to cover costs or hit your target.
What is net rental yield?
Gross rental yield is a year’s rent divided by the price. Net rental yield takes off what you lose to empty months and what you pay as owner: society maintenance, property tax, insurance and repairs. It is the income return the property really earns before tax and loan costs, and it is always lower than the gross figure.
Yield on total cost goes one step further and divides by the price plus stamp duty and registration, which you also paid to own the flat. Comparing it with an FD or another property is fairer than using gross yield.
How the yield is worked out
Rent × 12 × (1 − vacancy) − maintenance − property tax − insurance and repairsNet rent ÷ priceNet rent ÷ (price + stamp duty + cess + surcharge + registration)(Price × target + yearly costs) ÷ 12 ÷ (1 − vacancy)Worked example: ₹ 1 crore flat at ₹ 30,000 a month
Rent of ₹ 3,60,000 is a gross yield of 3.60%. After 5% vacancy and ₹ 80,000 of yearly costs, net rent is ₹ 2,62,000, a net yield of 2.62%. On the total cost of ₹ 1,07,60,000, including stamp duty and registration, it is 2.43%. A 3% net yield would need rent of ₹ 33,333 a month.
Worked example: ₹ 40 lakh new flat at ₹ 15,000 a month
The gross yield is 4.50%, but the same ₹ 80,000 of costs weighs more on a smaller rent: the net yield is 2.27%, and 2.16% on the total cost of ₹ 42,14,400.
Net yield at different rents
| Monthly rent | Gross yield | Net yield | On total cost |
|---|---|---|---|
| ₹ 20,000 | 2.40% | 1.48% | 1.38% |
| ₹ 25,000 | 3.00% | 2.05% | 1.91% |
| ₹ 30,000 | 3.60% | 2.62% | 2.43% |
| ₹ 40,000 | 4.80% | 3.76% | 3.49% |
What should you keep in mind?
- Rent, vacancy and costs are your figures. Check what similar flats nearby let for and what the society charges.
- Net yield leaves out loan costs and price growth. The cash-on-cash return calculator adds the EMI.
- Rent is taxable. Check the tax with your Chartered Accountant.
Frequently asked questions
Related answers and guides
- Solar Rooftop for Apartments: BESCOM Net Metering in 2026
- Rental Agreement Karnataka: Stamp Duty, Registration, Police
- Rental Yield in Bengaluru by Area: 2026 Investor Data
- Resale vs New Flat in Bengaluru: Price, Tax and Risk in 2026
Sources
- Karnataka Stamp Act, 1957 and Revenue Department notification RD/46/MNMU/2025 (registration fee 2% from 31 August 2025). Rates verified 18 Oct 2026.
- Rent, vacancy and costs are your inputs. Checked 19 Oct 2026.
Indicative only and before tax. Verify the tax position with your Chartered Accountant before acting, and confirm stamp duty and registration on Kaveri Online before registering.
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