NRI Property HubRental Yield Calculator
The brochure quotes gross yield; your bank account receives net. This calculator shows both, after society charges, vacant months and the purchase costs everyone forgets. Runs in your browser; nothing you type is sent anywhere.
Rental Yield Calculator
Gross & net yieldEstimates, not financial advice. Rental income earned by an NRI is taxable in India and the tenant may need to deduct TDS on the rent; a CA can set this up correctly.
Why net yield is the number that matters
A ₹75 lakh flat renting at ₹22,000 a month sounds like a 3.5% return. But the flat sits empty a month a year between tenants, the society collects its maintenance, and you paid roughly 6% over the sticker price in stamp duty, registration and brokerage on day one. Run those through and the same flat nets about 2.4%, and that is before income tax. Gross yield is what sells the flat; net yield is what pays you.
| From gross to net: ₹75 lakh flat at ₹22,000 rent | Amount |
|---|---|
| Annual rent (12 months at ₹22,000) | ₹2,64,000 |
| Less one vacant month | -₹22,000 |
| Less society maintenance (₹3,000/mo) | -₹36,000 |
| Less property tax and repairs | -₹18,000 |
| Net annual income | ₹1,88,000 |
| All-in cost (₹75L plus ~6% buying costs) | ₹79,50,000 |
| Gross yield (rent over price) | 3.5% |
| Net yield (net income over all-in cost) | 2.4% |
Illustrative worked example. Verified July 2026; your maintenance, vacancy and buying costs will differ.
The formula here is deliberately conservative: rent actually collected (12 months minus vacancy) less a year of outgoings, divided by your all-in purchase cost. Nothing exotic, just the deductions that every owner meets and no listing portal shows.
The NRI angle on yield
Low yields are the accepted trade-off of Indian residential property, most of the return comes from appreciation. That trade works better in cities where rental demand is real rather than hoped-for, which is why our Gujarat city guides pay so much attention to who actually rents in each locality: the diamond and textile workforce in Surat, the GIFT City salariat around Gandhinagar. A flat with a tenant pipeline holds its net yield; a flat in an investor-only tower does not.
Remember also that rent earned by an NRI lands in an NRO account and is taxable in India, our account guide explains the flow. And if the yield convinces you to buy with a loan, sanity-check the EMI against the rent using the EMI calculator: in most Indian cities the rent will not cover the EMI, and knowing the gap in advance is the point.
Quick answers
What is a good rental yield in India?
What is the difference between gross and net yield?
How should an NRI think about vacancy?
Is rental income taxable for an NRI, and does TDS apply?
Should I chase yield or appreciation?
How we researched this calculator
We write this calculator from primary sources first: the bodies that actually make, administer or enforce the rules described above, rather than second-hand summaries of them. Where this page states a rate, a threshold, a form number or a deadline, it is traced back to one of the following, and the full list below records which claim each source supports.
- Reserve Bank of India
- Income Tax Department, Government of India
Rules in this area change, sometimes mid-year. We re-check tax and foreign-exchange pages after each Union Budget and Finance Act, and we date every page with the last review rather than the last deploy. Our editorial policy sets out the method in full, and our corrections policy explains how to tell us if something here has gone out of date.
Sources & references
- Master Direction - Deposits and AccountsReserve Bank of IndiaThat rent from an Indian property is credited to an NRO account, which is where the net yield this tool computes actually lands.
- Income Tax Department e-Filing portalIncome Tax Department, Government of IndiaThe Indian return on which rental income is declared and the 30% standard deduction on annual value is claimed, the tax step that turns gross yield into net.
- TRACES - TDS Reconciliation Analysis and Correction Enabling SystemIncome Tax Department, Government of IndiaThe TDS a tenant must deduct on rent paid to a non-resident and the Form 16A that follows, the withholding that sits between gross rent and the net figure here.
About this calculator
NRI Property Hub creates independent guides and decision tools for Indians living abroad who are researching property in India. We are not a broker, developer, bank or adviser, and we take no commission on any transaction.
Our research prioritises relevant official government, regulatory, tax, banking and RERA sources where applicable. This page is educational information, not legal, tax, investment or financial advice; for a decision that turns on your own circumstances, check the position with a qualified professional.
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