Two scenarios · one property
One answer invites you to accept it. This page gives you two — the same property under two sets of your own assumptions, with the difference between them worked out — because the number that decides a letting case is one nobody can verify, and the honest way to handle it is to try it twice.
One price, both columns. What differs between the scenarios is what you believe about this property, not which property it is.
Use the all-in price you would actually pay, including registration and interiors if you want the honest figure.
Scenario A returns ₹26.40 L over 10 years, a net yield of 5.28%. Scenario B returns ₹52.80 L over 20 years, a net yield of 5.28%. B is ₹26.40 L higher than A.
Every field below is editable and every field is yours. They start identical except for the holding period — ten years against twenty — and both start at 0% appreciation, because a default that differed on a growth rate would be us forecasting the resale value of our own buildings.
Total return
₹26.40 L
52.80% of the price · net yield 5.28%
₹26.40 L rent after maintenance · ₹0 change in value
Placeholder value. Get it from letting agents for the same configuration in the same micro-market — not from a brochure.
Placeholder value. Include association charges, property tax, insurance and a repairs allowance.
Starts at 0% in both columns. We will not put a growth rate in your mouth for our own buildings — type the one you believe, and try the other column two points lower.
How long before you would sell. Costs of selling are not deducted.
Total return
₹52.80 L
105.60% of the price · net yield 5.28%
₹52.80 L rent after maintenance · ₹0 change in value
Placeholder value. Get it from letting agents for the same configuration in the same micro-market — not from a brochure.
Placeholder value. Include association charges, property tax, insurance and a repairs allowance.
Starts at 0% in both columns. We will not put a growth rate in your mouth for our own buildings — type the one you believe, and try the other column two points lower.
How long before you would sell. Costs of selling are not deducted.
Side by side
The same six figures for both columns, and the subtraction you would otherwise do in your head. Read the difference column against what actually differs between the two sets of assumptions — that panel is directly below it — because a gap is only interesting once you know which belief produced it.
| Figure | A · 10 yr | B · 20 yr | B − A |
|---|---|---|---|
| Gross rental yielda year's rent as a share of the price, before any expense | A · 10 yr6.00% | B · 20 yr6.00% | B − A— |
| Net rental yieldafter the maintenance figure in each column | A · 10 yr5.28% | B · 20 yr5.28% | B − A— |
| Rent over the hold, after maintenancenet annual rent held flat, multiplied by the years in that column | A · 10 yr₹26.40 L | B · 20 yr₹52.80 L | B − A+₹26.40 L |
| Change in valuethe assumption, compounded — the line to distrust | A · 10 yr₹0 | B · 20 yr₹0 | B − A— |
| Total returnrent after maintenance, plus the change in value | A · 10 yr₹26.40 L | B · 20 yr₹52.80 L | B − A+₹26.40 L |
| Total return as a share of pricebefore tax, before selling costs, before any cost of borrowing | A · 10 yr52.80% | B · 20 yr105.60% | B − A+52.80% |
One thing differs between the columns. Everything in the difference column above comes from this — nothing else moved.
Property price, shared by both: ₹50.00 L. Value moves to ₹50.00 L in A and ₹50.00 L in B, on the rates in your own fields.
Income tax on the rent, capital gains tax on the sale, stamp duty and registration paid on purchase, brokerage, vacant months, and any interest if you borrowed. Each of those reduces every figure above, in both columns.
Indicative calculation, not financial advice and not a projection of returns on any SUYUG project. SUYUG does not promise, project or guarantee rental income, occupancy or capital appreciation. Both columns are arithmetic over assumptions you entered.
The maths, printed
Five lines of arithmetic. They are printed here so you can check the page on paper rather than trusting it, and so you can see which costs it does not include.
monthly rent × 12
A ₹25,000 × 12 = ₹3,00,000
B ₹25,000 × 12 = ₹3,00,000
annual rent ÷ property price × 100
A ₹3,00,000 ÷ ₹50,00,000 × 100 = 6.00%
B ₹3,00,000 ÷ ₹50,00,000 × 100 = 6.00%
(annual rent − annual maintenance) ÷ property price × 100
A ₹2,64,000 ÷ ₹50,00,000 × 100 = 5.28%
B ₹2,64,000 ÷ ₹50,00,000 × 100 = 5.28%
price × (1 + growth rate)^years − price
A ₹50.00 L × (1 + 0.0000)^10 − ₹50.00 L = ₹0
B ₹50.00 L × (1 + 0.0000)^20 − ₹50.00 L = ₹0
(net annual rent × years) + capital appreciation
A ₹26.40 L + ₹0 = ₹26.40 L
B ₹52.80 L + ₹0 = ₹52.80 L
Yield is the only honest way to compare a home you might let with anything else you might do with the money, because it converts a rent into a rate. A ₹40,000 rent tells you nothing on its own; ₹40,000 a month against a ₹1.5 crore price is 3.2% a year gross, and that figure can sit next to a deposit rate, a bond, or a second property in a different corridor and be argued about properly. The same move works on the other side of the sum: to compare the prices rather than the rents, put two quotes on one area basis before dividing anything by either of them.
The gap between gross and net is where most of the disappointment lives. Gross yield is what gets advertised because it divides by nothing. Net yield subtracts what the property costs you to hold, and this page subtracts only the single maintenance figure you typed. A complete net figure would also take out property tax, insurance, the letting agent's cut, repairs, income tax on the rent, and — the one nobody budgets for — the months between tenants when the rent is zero and the maintenance is not.
Appreciation is treated as compound growth on the purchase price, which is the convention, and it is also the number to distrust most. It compounds, so a two-point difference in the assumed rate changes the answer more over twenty years than the entire rental income does. That is why this page starts it at zero in both columns and makes you type it: an appreciation rate supplied by the seller of the asset is not an input, it is a sales pitch.
It is also why the page has two columns rather than one. Put your real belief in B and leave A at zero, and the gap between the two lines on the chart is not a forecast — it is the exact amount of the case that rests on something nobody can check. If the case only works with the gap in it, you have learned the most useful thing this page can tell you.
Read this before you decide
Yield divides by what the property actually cost you — price plus stamp duty, registration, brokerage, GST where it applies, and the interiors you cannot let without. Dividing by the brochure price flatters the yield by several percent of the denominator. Work the full cash requirement on the down payment calculator.
This page multiplies by twelve because you asked it to. Real lettings have gaps between tenants, and a single vacant month is more than eight percent of the year's income gone.
Rent is income and is taxed as income; a sale is a capital gain and is taxed as one. Neither is deducted here, and between them they can take a meaningful share of the total return figure above.
If you borrow, the interest is a real cost of the investment and the return on your own money is a different calculation entirely. Leverage magnifies gains and losses symmetrically. Run the EMI page alongside this one.
It is the input with the largest effect and the least evidence behind it. Anyone who states it as a fact — including a developer — is guessing with more confidence than the situation allows.
Brokerage, legal fees and the time a property sits on the market are all real, and none of them appear in the capital-appreciation line. Nor does the possibility that the price simply does not move.
SUYUG Infra does not promise, project or guarantee rental income, occupancy or capital appreciation on any project. This page is an indicative calculation on figures you supplied, not financial or investment advice. Consult a registered financial adviser, and a tax adviser, before committing money.
Questions
Gross rental yield is a year's rent expressed as a percentage of what the property cost: annual rent ÷ property price × 100. It ignores every expense, which is exactly why it is the number quoted in advertisements. Use it to compare properties quickly, never to decide whether one pays for itself.
Net yield subtracts the running costs before dividing: (annual rent − annual maintenance and other outgoings) ÷ property price × 100. This calculator subtracts the single maintenance figure you enter. A fuller net yield would also deduct property tax, insurance, letting-agent commission, repairs, income tax on the rent, and the months the home sits empty between tenants.
Because any other starting number would be us forecasting the resale value of our own buildings. Appreciation is the assumption that dominates the total-return figure, so it belongs to you. Put in the rate you actually believe, then try it two points lower and see whether the case still holds.
They are two sets of your own assumptions about the same property, held side by side. A calculator that shows one answer invites you to accept it; two columns invite you to argue with yourself. Use them for the questions that actually decide a purchase — a cautious rent against an optimistic one, ten years of holding against twenty, or your own appreciation belief against zero. They ship differing only in holding period, and both start at 0% appreciation, because a default that differed on a growth rate would be us making a forecast about our own buildings.
No. It computes the return on the full purchase price as if bought outright. If you are borrowing, the interest you pay is a real cost of the investment and the return on your own money behaves quite differently — leverage magnifies both directions. Work out the instalment on our EMI calculator and read the two pages together.
Not in this calculation. Total rent is the monthly figure you entered multiplied by twelve and then by the number of years, held flat throughout, and maintenance is held flat the same way. Real rents and real maintenance both move. Holding both flat keeps the assumptions visible instead of burying a growth rate you did not choose.
No. Every figure on this page is arithmetic over values you typed in. SUYUG does not promise, project or guarantee rental income, occupancy or capital appreciation on any project, and nothing here should be read as investment advice. Speak to a registered financial adviser for that.
The rent a home commands depends on the floor, the aspect, the finish and who else is letting nearby — none of which a spreadsheet knows. Walk the project, ask what is actually letting in the neighbourhood, and ask us for the payment schedule and the approvals in writing.
