How to Calculate Your Property ROI Like a Professional

Beyond Simple Math: Understanding Yields

Real estate investors often confuse "Gross Yield" with "Net ROI." Here is how to calculate your true returns.

Step 1: Calculate Gross Annual Rent.
Step 2: Subtract all expenses (taxes, maintenance, vacancy periods).
Step 3: Divide the Net Income by your Total Investment Cost.

A professional investor always looks for a Net ROI of at least 4-6% for residential and 8-10% for commercial properties in India.