Rental Yield Calculator – Frequently Asked Questions

Rental Yield Calculator

What is rental yield and why does it matter?

Rental yield is the annual return you earn from renting a property, expressed as a percentage of the property’s purchase price.

ભાડેથી કેટલો કમાય છે એ માત્ર ભાડું જાણવાથી ખબર પડતું નથી — Yield ટકાવારી જણાવી આપે છે કે મૂડી શું આપી રહી છે.

How is rental yield calculated?

Very simple:

Rental Yield (%) = (Annual Rent ÷ Property Price) × 100

Example:
If annual rent = ₹2,40,000
Property cost = ₹40,00,000
Yield = (2,40,000 ÷ 40,00,000) × 100 = 6.0%

What is a good rental yield in Gujarat?

In most Gujarat cities:

• 2–3% → Low (common in luxury apartments or costly areas)

• 3–5% → Average to decent

• 6%+ → Good return (usually on affordable housing, outskirts, or commercial units)

સાઉથ ગુજરાતમાં 3–4% yield સામાન્ય છે. 6% મળે એ બહુ સારો ચાંસ છે — એટલે સાચા રેટે લેનદેન જરૂરી.

How do I use this calculator?

You only need two inputs:

• Expected annual rent (12 months’ rent total)

• Purchase cost of property

The calculator instantly gives you the yield percentage.

Can I include maintenance charges in rent?

If tenant pays for maintenance, enter total rent received.

If you pay, deduct the yearly maintenance cost before entering rent in the tool.

ભાડાની કમાણી શુદ્ધ હોય એ જરૂરી છે — મેન્ટેનન્સ આપતો હોવ તો ભાડામાંથી કાપી નાખો.

Why is rental yield important before buying property?

Rental yield helps you decide:

• Whether the property gives good return or not

• If you should rent it out or sell it

• Whether EMI can be recovered from rent

કેટલા લોકો હોય છે જે કહે કે “EMI ભરતો નથી ભાડામાંથી…” — Yield જોઈને ખરીદી કરો તો પસ્તાવું નહીં.

Is high rental yield always better?

Not always. High yield can sometimes mean:

• Lower property value appreciation

• Risky location or lesser demand area

• Tenant turnover is frequent

So, balance between yield and long-term resale value is ideal.

What about rental yield in Ahmedabad, Surat, Rajkot?

Approx. city-wise yields:

• Ahmedabad: 2.5%–3.5% (central low, outskirts better)

• Surat: 3%–5% depending on area (Adajan, Pal tend higher)

• Rajkot: 2%–4% for flats, higher for shops

જ્યાં Growth વધારે હોય ત્યાં Yield ઓછી અને જ્યાં Growth ઓછી હોય ત્યાં Yield વધારે — બસ એ સમજવાની વાત છે.

Can I use this calculator for shops or commercial units?

Yes. In fact, shops often have better yield (5%–8%), especially in small towns or gallas near bus stands, markets, etc.

Just make sure to enter annual rent (12 months × rent) and purchase price of unit.

Can I calculate net rental yield (after tax, maintenance)?

This calculator shows gross yield. If you want net yield:

• Subtract annual expenses (maintenance, property tax, vacancy)

• Then apply the formula

We may release a Net Rental Yield Pro version later.

Should I use yield to compare two investment options?

Definitely. For example:

Even though Property B is cheaper, it earns more rent — so it may be a better deal!

માત્ર દામ જોઈને નહિ, ભાડાની આવક જોઈને નિર્ણયો લેવાનું સમય આવી ગયું છે.

Any tips to improve rental yield?

Yes:

• Buy in areas with tenant demand (near colleges, offices, GIDC)

• Keep house in rent-ready condition

• Avoid overspending on interiors

• Rent to professionals or families for stability