ROI & Rental Yield Calculation Formulas

A simple mini-guide to run your own checks:

  • Rental Yield (%) = (Annual Rent ÷ Property Cost) × 100

  • ROI (%) = (Profit ÷ Total Investment) × 100

  • Appreciation (%) = (Selling Price – Buying Price) ÷ Buying Price × 100

  • Payback Period (Years) = Total Investment ÷ Annual Rental Income

💡 Buy a villa at ₹2 Cr → Rent at ₹18 Lakh/year (average ₹1.5 Lakh/month with 100% occupancy or ₹3 Lakh/month at 50% occupancy) = ~9% rental yield.