Rental Income Growth Calculator
Enter your property value, monthly rent, and expenses. See how rental income, net yield, and cash flow grow year by year as rent increases.
Property Details
Annual Expenses
Summary
Gross Yield (Yr 1)
6.00%
Before expenses
Net Yield (Yr 1)
6.00%
After all deductions
Year 1 Annual Breakdown
Monthly Rent Now
₹25,000
Monthly Rent Yr 10
₹38,783
+5%/yr growth
Total Net Income (10 yrs)
₹37.73 L
Cumulative Breakeven
Year 1
Cumulative turns positive
Net Yield in Year 10
9.31%
Yield improves as rent grows
Gross Yield in Year 10
9.31%
On original property value
Note: Income yield only, excludes property appreciation, capital gains tax, and income tax on rental income.
Income Growth & Breakeven Chart
Year-by-Year Projection
| Year | Monthly Rent | Effective Rent | Expenses | Net Income | Net Yield | Cumulative |
|---|---|---|---|---|---|---|
| Year 1Breakeven | ₹25,000 | ₹3,00,000 | ₹0 | ₹3.00 L | 6.00% | ₹3.00 L |
| Year 2 | ₹26,250 | ₹3,15,000 | ₹0 | ₹3.15 L | 6.30% | ₹6.15 L |
| Year 3 | ₹27,563 | ₹3,30,750 | ₹0 | ₹3.31 L | 6.62% | ₹9.46 L |
| Year 4 | ₹28,941 | ₹3,47,288 | ₹0 | ₹3.47 L | 6.95% | ₹12.93 L |
| Year 5 | ₹30,388 | ₹3,64,652 | ₹0 | ₹3.65 L | 7.29% | ₹16.58 L |
| Year 6 | ₹31,907 | ₹3,82,884 | ₹0 | ₹3.83 L | 7.66% | ₹20.41 L |
| Year 7 | ₹33,502 | ₹4,02,029 | ₹0 | ₹4.02 L | 8.04% | ₹24.43 L |
| Year 8 | ₹35,178 | ₹4,22,130 | ₹0 | ₹4.22 L | 8.44% | ₹28.65 L |
| Year 9 | ₹36,936 | ₹4,43,237 | ₹0 | ₹4.43 L | 8.86% | ₹33.08 L |
| Year 10 | ₹38,783 | ₹4,65,398 | ₹0 | ₹4.65 L | 9.31% | ₹37.73 L |
How to use the Rental Income Growth Calculator
Also known as a rent escalation calculator or rental yield growth calculator. Four inputs give you a complete picture of what a rental property actually earns over time.
- 01
Enter your property value and current rent
The property value is used to calculate gross and net yield percentages. Monthly rent is the starting point for the projection.
- 02
Set the annual rent increase and projection period
In most Indian cities, residential rents increase 5–10% per year at renewal. Enter the rate you expect and how many years you want to project, up to 30.
- 03
Add your expenses
Vacancy rate accounts for months the property sits empty (5% = ~18 days/year). Maintenance is typically 1% of property value annually. Add property tax and insurance if applicable.
- 04
Include your home loan EMI (optional)
Toggle on the loan section and enter your outstanding loan amount, interest rate, and remaining tenure. The calculator shows whether your rental income covers the EMI, and by how much.
What people use it for
Before buying a rental property
Plug in the asking price and expected rent. If a ₹60 L flat rents for ₹18,000/month, that's a 3.6% gross yield, before vacancy, maintenance, or tax. Most people are surprised how thin the margin actually is.
When your EMI is higher than the rent
A lot of Indian landlords are in this situation: EMI of ₹40,000, rent of ₹28,000. The calculator shows the exact year when rent growth (at say 7%/yr) finally covers the EMI, so you know how long you're subsidising the property.
Deciding how much to raise rent at renewal
Run two projections: one at 5% annual increase, one at 10%. The difference in cumulative income over 10 years is often larger than people expect, and it helps justify the conversation with a tenant.
Comparing a property to other investments
Net yield of 2.5% after expenses vs a debt mutual fund at 7%. The numbers are right there. Property has appreciation upside that this calculator doesn't capture, but at least you're comparing the income side honestly.
Worked example: a ₹50 lakh flat rented at ₹25,000
Gross rental yield is a year's rent divided by the property value: ₹3,00,000 ÷ ₹50,00,000 = 6%. That's the headline figure, but it ignores costs. Allow 5% for vacancy, ₹50,000 a year for maintenance, ₹10,000 property tax and ₹5,000 insurance, and net income in the first year is about ₹2,20,000, a net yield of 4.4%.
A loan changes the picture. With ₹35 lakh borrowed at 9% over 20 years, the EMI is about ₹31,490 a month, or ₹3,77,885 a year. Set against ₹2,85,000 of rent after vacancy and ₹65,000 of other costs, that's a shortfall of about ₹1,57,885 in year one, which you'd pay from other income. With rent rising 5% a year, it reaches about ₹38,783 a month by year 10, which is how the gap narrows over time.
| Measure | Year 1 figure |
|---|---|
| Gross yield | 6.0% |
| Net yield after costs (no loan) | 4.4% |
| Annual EMI on ₹35 lakh at 9%, 20 years | ₹3,77,885 |
| Cash flow with that loan | About −₹1,57,885 |
What the projection doesn't include
- Capital growth. Any rise in the property's value is separate from rental income; this calculator focuses on income and yield.
- Tax. Rental income is taxed after a 30% standard deduction in India, and home-loan interest may be deductible; both change the after-tax return.
- One-off costs such as stamp duty, brokerage and furnishing, which can take years of rent to recover.
- Vacancy and repairs vary a lot by city and building. Use local figures rather than the defaults where you can.