Full analysis · pro-forma · IRR · free
Rental Property Calculator India
Cash flow is only part of the story in India, where yields are low and appreciation does the heavy lifting. Model the full hold — year-by-year cash flow, equity build, and IRR including the sale.
Educational calculators — always consult a licensed professional before making financial decisions.
The agreed acquisition price.
Investment properties typically need 20%+ down.
Investment rates run above owner-occupied rates.
Gross rent across all units.
Tax, insurance, maintenance, management, repairs. Exclude the mortgage.
Parking, laundry, storage. Enter 0 if none.
Stamp duty, registration, legal.
One-time work to make it rent-ready.
~4% is a common baseline.
Indian metros have historically outpaced rent growth.
How fast rents rise in this market.
How fast costs rise.
~6% is typical in this market.
20-year terms are typical here.
Longer holds usually improve returns.
Total Profit — 10 Year Hold
+₹12,78,981
Cash flow + sale proceeds − ₹23,00,000 invested
Screeners
GRM
26.7
Price ÷ annual rent
1% rule
0.30%
✗ Below 1%
Year-1 NOI
₹2,28,000
After vacancy & expenses
Debt service
₹6,78,690
Annual mortgage
Year-by-Year Pro-Forma
| Yr | Cash flow | Cumulative | Value | Equity |
|---|---|---|---|---|
| 1 | -₹4.51 L | -₹4.51 L | ₹84 L | ₹21.24 L |
| 2 | -₹4.44 L | -₹8.94 L | ₹88.2 L | ₹26.78 L |
| 3 | -₹4.36 L | -₹13.3 L | ₹92.61 L | ₹32.66 L |
| 4 | -₹4.29 L | -₹17.59 L | ₹97.24 L | ₹38.9 L |
| 5 | -₹4.21 L | -₹21.8 L | ₹1.02 Cr | ₹45.51 L |
| 6 | -₹4.13 L | -₹25.93 L | ₹1.07 Cr | ₹52.53 L |
| 7 | -₹4.04 L | -₹29.97 L | ₹1.13 Cr | ₹59.98 L |
| 8 | -₹3.96 L | -₹33.93 L | ₹1.18 Cr | ₹67.88 L |
| 9 | -₹3.87 L | -₹37.8 L | ₹1.24 Cr | ₹76.27 L |
| 10 | -₹3.78 L | -₹41.58 L | ₹1.3 Cr | ₹85.18 L |
Equity = property value − remaining loan balance. Cash flow reflects rent growth and expense inflation compounding each year.
Where the Return Comes From
Pre-tax projection. Excludes income tax and depreciation. Growth assumptions compound — small changes move the result a lot, so test a conservative case too. Estimate only; consult a licensed professional.
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Why Indian rentals need a full-hold model
Judging an Indian rental on month-one cash flow will almost always tell you to walk away. Gross rental yields in the metros run about 2–4% — roughly 2–3% in Mumbai, 2.5–3.5% in Delhi/NCR, and around 3–3.6% citywide in Bengaluru (higher, 5–6%, in prime IT corridors like Whitefield and Sarjapur) — while home-loan rates sit meaningfully above that. The EMI exceeds the rent, so financed properties run negative cash flow from day one. The national gross-yield average of roughly 5% is lifted mainly by tier-2 cities.
That doesn't make the asset bad — it moves where the return lives. Indian property returns come from capital appreciation, disciplined loan paydown that quietly converts EMI into equity, and tax treatment. This calculator models all of it: rent growing each year, expenses inflating separately, the loan amortising, the property appreciating, and finally the sale net of costs. The IRR ties those cash flows into a single annualised number, which is the only fair way to compare a low-yield, high-appreciation property against, say, an SIP.
On tax. These figures are pre-tax by design. In practice you get a flat 30% standard deduction on net annual value under Section 24(a), and home-loan interest is deductible under Section 24(b) — fully for a let-out property, though the resulting house-property loss you can set off against other income is capped at ₹2 lakh a year. On exit, long-term capital gains apply after 24 months. See the capital gains calculator for the sale, the rental yield calculator for a quick screen, and property vs SIP to compare against equities.
How it works
Enter the purchase
Property value, down payment, home-loan rate, tenure, stamp duty and registration.
Add income and expenses
Rent, other income, vacancy, society charges, property tax, and repairs.
Set growth and hold
Appreciation, rent growth, expense inflation, selling costs, and hold period.
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% |
National gross-yield average ~5%, lifted by tier-2 cities (Global Property Guide 2025–26). With loan rates above yield, financed rentals typically run negative cash flow — the return comes from appreciation and paydown.
Frequently asked questions
Do Indian rental properties usually cash-flow positive?+
Rarely, when financed. Gross rental yields in Indian metros run about 2–4% while home-loan rates are considerably higher, so the EMI typically exceeds the rent and early cash flow is negative. The investment case usually rests on capital appreciation, loan paydown, and tax benefits — the 30% standard deduction on net annual value under Section 24(a) and the deduction for home-loan interest under Section 24(b). This calculator shows the full picture including the eventual sale, which is where the return normally materialises.
What is an IRR and why does it matter more than cash flow?+
Internal rate of return (IRR) is the annualized return across the entire life of the investment — every year of cash flow plus the proceeds when you sell — accounting for the fact that money received sooner is worth more than money received later. Cash flow alone tells you what the property pays you each month; IRR tells you what the whole investment earned per year. A property with weak cash flow but strong appreciation can have a far better IRR than one with the opposite profile.
What does the pro-forma table show?+
It projects the investment year by year: gross rent growing at your rent-growth rate, operating expenses rising with inflation, the resulting cash flow, cumulative cash flow, the property's appreciating value, and your equity (value minus remaining loan balance). This is where the compounding shows up — a deal that is break-even in year one often cash-flows meaningfully by year five if rents outpace expenses.
How accurate are these projections?+
They're only as good as the assumptions. Appreciation and rent growth compound, so small changes produce large differences over a 10- to 30-year hold — a one-point change in appreciation can swing total profit substantially. Treat the output as a model, not a forecast: run a conservative case alongside your base case, and be especially careful with the appreciation input, which is both the largest and least predictable component of total return.
Why does the calculator exclude income tax?+
This is a pre-tax projection. Tax treatment varies enormously by investor — your marginal rate, depreciation, how losses can be offset, and the tax on sale all depend on personal circumstances and jurisdiction. Modeling it generically would create false precision, so we show pre-tax figures and cover tax separately in dedicated depreciation and capital-gains tools.
Model your deal before you book the flat.
Back to the calculator ↑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.