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Property Investment ROI Calculator

Calculate rental yield, annual ROI, break-even period and total wealth created from a real estate investment - before you buy.

Property Investment Details
Rental Yield Guide

Typical Returns Across India

CityGross Rental YieldTypical AppreciationBest For
Mumbai1.5–3%5–8%Long-term capital gain
Bengaluru3–5%6–10%Rental + appreciation
Hyderabad3–5%8–12%High growth potential
Chennai3–4.5%5–8%Stable rental income
Pune3.5–5%6–9%IT corridor demand
Tier-2 Cities5–8%3–6%Rental yield focused
FAQ

Frequently Asked Questions

Gross yield of 2–5% is typical in major metros. Mumbai 1.5–3%, Bengaluru/Hyderabad 3–5%, Pune/Chennai 3–4.5%. Tier-2 cities yield 5–8% but with lower liquidity. Above 4% gross yield + 5–7% appreciation is generally considered a good real estate investment.

ROI = (Annual Rent + Capital Appreciation) ÷ Purchase Price × 100. E.g., ₹50L property, ₹20,000/mo rent (₹2.4L/yr), 6% appreciation (₹3L gain): total return = ₹5.4L, ROI = 10.8%. Our calculator includes maintenance costs and shows net rental yield.

Key costs: society maintenance, property tax (0.1–0.5%/year), income tax on rental income (30% standard deduction then slab rate), vacancy (1–2 months/year), repairs (1–2% of value/year), brokerage on re-leasing. Net yield is typically 30–40% lower than gross yield.

Break-even = Purchase Price ÷ Annual Rent. ₹50L at ₹2.4L/yr = 20.8 years rent-only. Including 6% annual appreciation, the property value doubles in ~12 years, dramatically improving effective wealth creation. Always calculate both rent-only and total-return break-even.

It depends on location, price and your holding period. Pros: inflation hedge, loan availability, rental income. Cons: low liquidity, high transaction costs (5–10% stamp duty + registration), maintenance burden. Equity MFs have outperformed real estate in most cities over 10+ years. Property makes sense when yield + appreciation > 8% and you hold for 10+ years.

Leverage amplifies ROI on equity. ₹1 crore property, 20% down (₹20L equity), 6% appreciation = ₹6L gain = 30% ROI on equity. But 9% loan interest (~₹7.2L/year) must be covered by rent. If rent exceeds EMI, leveraged return is excellent. If rent falls short, you have negative carry. Always calculate if rent covers EMI.