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Cap Rate Calculator India
Indian residential property is yield-driven, and cap rate is the net-of-cost cousin of rental yield. Enter a property value and rent to see the net operating income and cap rate against city benchmarks.
Educational calculators — always consult a licensed professional before making financial decisions.
The all-in acquisition price of the property.
Gross rent before any expenses — check local comps.
Know your costs? Enter them. If not, the 50% rule estimates them.
Share of the year the unit sits empty. ~4% is a common baseline. (Ignored under the 50% rule.)
Property tax + insurance + maintenance + management + repairs. Exclude mortgage. (Used only in 'Enter my expenses' mode.)
Cap Rate
1.9%
NOI ₹1,50,000 ÷ price ₹80,00,000
Marker shows this property's cap rate against the IN healthy band.
Cap rate excludes mortgage payments and income tax by design. Compare it against similar properties in the same market — not a universal benchmark. Estimate only; consult a licensed professional.
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Cap rate and rental yield in India
Cap rate is net operating income (rent after municipal tax, society charges, insurance, and repairs) divided by property value. In India it lands close to net rental yield. Gross yields in the major metros run 2–4% — Mumbai around 2–3%, Delhi/NCR 2.5–3.5%, Bengaluru roughly 3–3.6% citywide (5–6% in prime IT corridors like Whitefield and Sarjapur). The national gross-yield average is about 5%, lifted by tier-2 cities. A net cap rate of roughly 3.5–6% is strong for Indian residential.
Yields are compressed because prices have historically outrun rents, so most Indian investors weigh capital appreciation alongside running income. Note that cap rate excludes your home-loan EMI and income tax; for the gross-versus-net split, use the rental yield calculator, and for tax, remember the 30% standard deduction under Section 24(a) plus home-loan interest under Section 24(b).
How it works
Enter value and rent
Input the property value and expected gross monthly rent.
Set operating expenses
Enter annual costs (property tax, society charges, repairs) or use the 50% rule.
Read the cap rate
Get NOI and cap rate versus city yield benchmarks.
Gross rental yield by Indian city (2025–2026)
| City | Gross rental yield |
|---|---|
| Mumbai | 2.0–3.0% |
| Delhi / NCR | 2.5–3.5% |
| Bengaluru | 3.0–3.6% (5–6% prime IT corridors) |
| Pune | 3.0–3.4% |
| Hyderabad | 3.0–3.5% |
Gross-yield ranges (Global Property Guide, Sobha 2026). National gross-yield average ~5%. Net cap rate runs below gross yield after costs.
Frequently asked questions
What is a good cap rate (rental yield) in India?+
Indian residential property is yield-driven, and gross rental yields in the major metros typically run 2–4% — Bengaluru is usually the highest metro at around 3.5–4%, with Mumbai, Delhi, and Hyderabad in the 2.5–4% band. Tier-2 cities can reach 6–9%. A net yield of 4–8% is generally considered good. Because Indian yields are compressed, most investors also weigh capital appreciation heavily.
How is cap rate calculated?+
Cap rate = Net Operating Income ÷ property value × 100. NOI is your annual rent (after vacancy) minus operating costs such as municipal property tax, society/maintenance charges, insurance, and repairs — excluding your home-loan EMI and income tax. In India this figure is very close to net rental yield.
Is cap rate the same as rental yield in India?+
They're closely related. Gross rental yield uses gross rent over property value; cap rate (and net yield) subtract operating expenses first, giving a truer picture of what the property earns. For a detailed gross-versus-net breakdown, use the rental yield calculator.
Why are rental yields in India so low?+
Property prices in Indian metros have historically outpaced rent growth, keeping gross yields around 2–4% in cities like Mumbai and Delhi. Investors typically accept the low running yield in exchange for long-term capital appreciation and the security of owning a hard asset.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.