Finance · Free tool
Rental Yield Calculator
Indian residential rental yields hover at 2-3% in metros — well below FD rates. Use this to check whether buying-to-rent makes sense or if you're better off in fixed income.
Society dues, repairs, vacancy buffer.
Compare to FD ~7% or equity ~12%. Yield alone undervalues real estate — capital appreciation matters.
FAQ
Why are Indian rental yields so low?
Property prices in metros are 30-50× annual rent (vs 15-20× in mature markets). The market prices in expected capital appreciation, not just rental income. Mumbai, Bangalore, NCR yields are 2-3%.
Is rental yield enough to justify a buy-to-let?
On its own, no — FDs at 7% beat 3% net yield. The thesis must include capital appreciation. Historical average is ~5-6% appreciation, total return ~8-9%.
Should I include EMI in cost?
For yield: no — yield is property-vs-market. For cashflow analysis: yes — your monthly outflow is EMI + taxes + maintenance, vs inflow of rent.