Calculating your gross rental yield is straightforward once you know the Rental Yield formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Rental Yield Calculator.
What is Rental Yield?
The Rental Yield calculation tells you your gross rental yield from a few simple inputs. The figure you are solving for here is the gross rental yield, expressed in percent.
The Rental Yield formula
The core formula is:
Gross rental yield = Annual rental income ÷ Property price × 100Here is what each input means:
- Annual rental income — a money amount. Example: ₹6,00,000.
- Property price — a money amount. Example: ₹1,00,00,000.
- Annual expenses — a money amount. Example: ₹60,000.
How to calculate it step by step
- Write down the annual rental income (for example, ₹6,00,000).
- Write down the property price (for example, ₹1,00,00,000).
- Write down the annual expenses (for example, ₹60,000).
- Apply the formula above to get your gross rental yield.
- Double-check the result with the Rental Yield Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Annual rental income | ₹6,00,000 |
| Property price | ₹1,00,00,000 |
| Annual expenses | ₹60,000 |
| Gross rental yield | 6.00% |
| Net rental yield | 5.40% |
With annual rental income of ₹6,00,000, property price of ₹1,00,00,000 and annual expenses of ₹60,000, the gross rental yield works out to 6.00%.
Example 2
With annual rental income of ₹12,00,000, property price of ₹1,00,00,000 and annual expenses of ₹60,000, the gross rental yield works out to 12.00%.
| Result | Value |
|---|---|
| Gross rental yield | 12.00% |
| Net rental yield | 11.40% |
Example 3
With annual rental income of ₹3,00,000, property price of ₹1,00,00,000 and annual expenses of ₹60,000, the gross rental yield works out to 3.00%.
| Result | Value |
|---|---|
| Gross rental yield | 3.00% |
| Net rental yield | 2.40% |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Rental Yield Calculator does it instantly, for free, with the formula and a worked example built in.
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