Rental Yield Calculator
Rental Yield Calculator – Measure Property Income Potential Before You Invest
For investors, property is more than just land or walls — it’s an income-generating asset. But not every property that looks attractive on paper actually delivers good returns. That’s why smart investors never buy based only on “gut feel” or “location hype.” They run the numbers, and one of the most important numbers in real estate investing is Rental Yield.
Using a home loan EMI calculator with prepayment option, you can estimate how early payments (like bonuses or savings) can help reduce this total repayment drastically.
Our Rental Yield Calculator helps you quickly measure how much income a property generates compared to its cost. Whether you’re looking at a flat in Whitefield, a villa in Sarjapur, or a commercial shop in Indiranagar, this tool gives you a clear percentage return figure. And more importantly, it helps you compare properties — or even compare property with other asset classes like fixed deposits or mutual funds.
📌 What is Rental Yield?
Rental yield is the annual rental income you earn from a property, expressed as a percentage of the property’s total value
Formula:
Rental Yield (%)=Annual RentProperty Value×100\text{Rental Yield (\%)} = \frac{\text{Annual Rent}}{\text{Property Value}} \times 10
Rental Yield (%)=Property ValueAnnual Rent×100
Example:
Property Value = ₹1 crore
Monthly Rent = ₹30,000 (₹3.6 lakh/year)
Rental Yield = (₹3.6 lakh ÷ ₹1 crore) × 100 = 3.6%
This means the property earns you a 3.6% return every year through rent.
📊 Why Rental Yield Matters
Compare Properties
A 3BHK in Electronic City may rent for ₹25k on ₹80L (yield 3.75%), while a 2BHK in Indiranagar rents for ₹40k on ₹1.5Cr (yield 3.2%). The rental yield calculator shows which one offers better returns.
Benchmark Against Alternatives
FD rates are ~6–7%, equity returns average 12–15%. If property yield is just 2–3%, it may not justify the effort unless there’s strong capital appreciation.
Cash Flow Planning
Rental yield helps landlords know if rental income can cover EMI, maintenance, or lifestyle costs.
Location Analysis
Areas with higher demand (near IT parks, colleges) usually offer higher yields.
🏙️ Bangalore Rental Yields – Reality Check
Prime localities (Indiranagar, Koramangala): 2.5–3.5%
Mid-range IT hubs (Whitefield, Electronic City): 3–4%
Upcoming outskirts (Sarjapur, North Bangalore): 3.5–5%
While yields in Bangalore are modest compared to stocks, the capital appreciation (5–8% annually) makes up for it. Smart investors use both the rental yield calculator and IRR/ROI metrics for a full investment picture.
🔢 Example Calculation – Bangalore Flat
Purchase Price: ₹75,00,000
Monthly Rent: ₹22,000 (₹2.64L/year)
Rental Yield = (2.64 ÷ 75) × 100 = 3.52%
Now add appreciation: if the property grows to ₹1 crore in 7 years, your blended return becomes significantly higher. Using the rental yield calculator, you can estimate these outcomes in seconds.
⚠️ Factors That Impact Rental Yield
Location – Proximity to offices, schools, metro = higher rents.
Property Type – 1BHK often yields higher % than luxury 4BHKs.
Furnishing – Fully furnished units attract higher rent.
Tenant Profile – Working professionals pay more consistently than students.
Market Conditions – During IT slowdowns, rents stagnate; in boom cycles, yields rise.
Vacancy Rate – Months without tenants reduce effective yield.
❌ The Problem with Traditional Property Investments
Even if rental yield looks attractive, challenges remain:
Low % returns compared to equities or bonds.
EMI eats into rent — if financed, most rent goes straight to the bank.
Liquidity issues — can’t sell quickly if you need funds.
Management hassle — tenants, repairs, society disputes.
For small investors, this often means their rental property is more emotional than financial.
✅ How Owne Helps Investors Earn Smarter
Owne was designed to make property investment work better for investors:
Higher Effective Yields → Owne’s rent-to-own model ensures investors earn both monthly rent and appreciation-linked returns.
Structured IRR → Instead of depending only on 2–4% rent, investors target blended IRRs of 10–15%.
Diversified Risk → Investors can co-invest across properties instead of putting ₹1 crore into a single flat.
No Management Stress → Owne handles agreements, tenants, and property lifecycle.
In short: Owne turns property investing into a structured, yield-plus-growth opportunity.
📉 Rental Yield vs Other Investments
Aspect
Annual Return
Liquidity
Risk
Fixed Deposit
6–7%
High
High
EMI
12–14%
Lighter ownership payments
Lighter ownership payments
Stamp Duty Payment
3–4% rental + 5–8% appreciation
Still payable upfront, but easier with lower initial stress
Still payable upfront, but easier with lower initial stress
Liquidity Impact
10–15% IRR (blended)
Lower, since savings aren’t fully drained
Lower, since savings aren’t fully drained
Frequently Asked Questions
Owne lets you own your home step-by-step without high
upfront costs or loan uncertainties.
Conclusion
Rental yield is the heartbeat of property investment. A flat with poor rental yield can drain cash flow, while a smartly chosen property can balance rent income with appreciation.
Our Rental Yield Calculator makes this evaluation simple. In a city like Bangalore, where average yields hover around 3–4%, investors need to be extra cautious — or find smarter structures that boost returns.
That’s where Owne comes in. By combining steady rental flows with structured equity participation, Owne helps investors achieve higher, more sustainable returns.
👉 Try our Rental Yield Calculator today, and see how Owne can help you move from just “owning property” to owning smart investments.