Calculate gross and net rental yield to evaluate if a property is a good investment. Compare returns across Bangalore localities.
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Include: society maintenance, BBMP property tax, insurance, annual repairs
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Gross Yield
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Net Yield
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Annual Rent (Gross)—
Vacancy Loss—
Annual Expenses—
Net Annual Income—
Monthly Net Income—
How Is Rental Yield Calculated?
Rental yield measures the annual return on a property investment as a percentage of its purchase price. There are two types. Gross rental yield is the simpler measure: (Annual Rent ÷ Property Value) × 100. It does not account for expenses. Net rental yield is more realistic: ((Annual Rent − Vacancy Loss − Expenses) ÷ Property Value) × 100. This calculator computes both, giving you the true picture of your investment return after accounting for maintenance charges, property tax, and periods when the property sits vacant between tenants.
What Is a Good Rental Yield in Bangalore?
For residential properties in Bangalore, a gross yield of 3–4% is the current market norm. Anything above 4% is considered a strong rental investment. Properties near IT corridors like Whitefield, Electronic City, and Sarjapur Road tend to offer higher yields due to consistent rental demand from the IT workforce combined with relatively lower purchase prices compared to central Bangalore. Furnished apartments can command 20–40% more rent than unfurnished units, directly boosting your yield without increasing the property value proportionally.
Rental Yield vs Fixed Deposits — Which Is Better?
As of 2026, bank fixed deposits offer 6.5–7.5% annual returns with zero risk. A residential property yielding 3% net rental yield needs to appreciate at least 4–5% annually in value to match an FD. The advantage of property is that both components — rental income and capital appreciation — work together. In Bangalore's growth corridors, properties have historically appreciated 8–12% annually, making the combined return significantly higher than fixed deposits. Use our EMI Calculator to plan the financing side, and factor in stamp duty costs as part of your total investment. Read our property market guides for locality-level price trends.
Frequently Asked Questions
A gross rental yield of 3–4% is typical for residential properties in Bangalore. Yields above 4% are considered good. Commercial properties and co-living spaces can yield 6–8%. Peripheral areas like Electronic City and Whitefield often deliver higher yields than central locations like Indiranagar or Koramangala due to lower purchase prices relative to rents.
Gross rental yield is calculated as (Annual Rent ÷ Property Value) × 100. It is a quick indicator but ignores costs. Net rental yield deducts annual expenses like maintenance, property tax, insurance, repairs, and vacancy loss from the annual rent before dividing by property value. Net yield gives a more realistic picture of actual cash returns.
Furnishing the property adds 20–40% to rent. Buying in high-demand rental areas near IT parks or metro stations ensures low vacancy. Choosing smaller units like 1BHK or studio apartments gives higher yield per square foot. Keeping vacancy periods short by pricing rent competitively also helps. Co-living conversions can boost yield to 6–8%.
Both matter for total return. Rental yield provides regular monthly income and is more predictable. Capital appreciation depends on location growth and market cycles. Ideally, look for properties offering at least 3% rental yield with strong appreciation potential. Areas near upcoming metro lines or IT corridors in Bangalore often deliver both.
Deduct: society maintenance charges, BBMP property tax, property insurance premiums, annual repairs and painting fund (typically 1% of property value per year), vacancy allowance (1–2 months of lost rent per year), and property management or brokerage fees if applicable. These typically reduce gross yield by 1–2 percentage points.
Published: 2026-10-01 | Updated on: | By L K Monu Borkala, CEO & Founder, OneCity Property — 15 years of property consultancy experience and over 20 years in marketing and management at OneCity Technologies Pvt. Ltd.
