Commercial Property ROI & Rental Yield Calculator
Estimate yield, rent and total return on office, retail, SCO or pre-leased units (indicative)
Indicative estimate for planning only — not investment advice. It shows GROSS rent and capital growth; subtract maintenance/CAM, property tax, income tax, TDS, GST and any vacancy for your real net return. Rent, escalation and appreciation are assumptions you set. Confirm with the lease papers and a local expert.
Quick yield calculators
Two shortcuts — work out the yield from the price, or the price from the yield you want.
1. Find the ROI (yield)
You know the price, rent and size — get the gross yield.
2. Find the investment needed
You know the yield you want, the rent and size — get the price.
Gross figures, indicative only — not investment advice. Yield uses annual rent divided by price; the investment shortcut is annual rent divided by your target yield.
How commercial property returns work
A commercial property earns in two ways, the rent it pays you every year and the rise in its value when you sell. Commercial yields are usually higher than homes, which is why pre-leased offices, shops and SCO units are popular with investors. But the real return depends on the tenant, the lease terms and the costs you carry, so always look at the net figure, not just the headline rent.
Comparing options? Explore commercial property, SCO plots and pre-leased units, verify approvals with our RERA guide, and browse live projects.
Frequently asked questions
What is a commercial property ROI calculator?
It is a planning tool that estimates the return on a commercial property from two sources, the rent you earn and the rise in the property value over time. You enter the price, rent and expected growth, and it works out the numbers.
How is rental yield calculated?
Rental yield is the annual rent divided by the property price, shown as a percentage. For example, twelve lakh of annual rent on a two-crore property is a six percent gross yield.
What is a good rental yield for commercial property?
Commercial yields are usually higher than homes, often in the mid to high single digits depending on the tenant, location and whether the unit is pre-leased. Prime, well-tenanted units command lower yields but safer income.
What is a pre-leased commercial property?
It is a unit already rented to a tenant, so you earn income from day one with a known yield. Investors like pre-leased units for the ready cash flow, though the return depends on the lease terms and tenant strength.
What is gross yield versus net yield?
Gross yield ignores costs; net yield subtracts maintenance, property tax, vacancy and management before dividing by the price. This tool shows gross yield, so keep a margin for those costs.
Does the calculator include maintenance and taxes?
No. It shows gross rent and capital growth. Subtract CAM or maintenance, property tax, income tax, TDS and any vacancy to reach your real, net return.
Is GST charged on commercial rent?
Commercial rent generally attracts GST above a threshold, unlike residential rent. The tenant usually pays it, but confirm your position with a tax adviser.
Is TDS deducted on commercial rent?
Yes, tenants above a limit deduct TDS on rent, which you adjust against your tax. Factor it into your cash-flow planning.
How does capital appreciation add to ROI?
Beyond rent, the property value can rise over the years. The total return combines the rent you collect and the gain when you sell, which this tool estimates over your holding period.
What is a cap rate?
The capitalisation rate is the net operating income divided by the property value, a close cousin of net yield. Investors use it to compare commercial assets quickly.
Should I buy office space, retail or SCO?
Each behaves differently, retail depends on footfall, offices on corporate demand, and SCO plots on flexible use and location. Yield, tenant risk and liquidity differ, so match the asset to your goal.
What raises commercial ROI?
A strong, long-lease tenant, a prime location, a fair purchase price and steady rent escalation. Location and tenant quality drive both the yield and the resale value.
How accurate are these figures?
They are indicative estimates for planning. Actual returns depend on the real rent, escalations, costs, vacancy, market rate and time. Confirm with the lease papers and a local expert.
Do I need to verify RERA and approvals for commercial units?
Yes, check the occupancy certificate, permitted use and title, and RERA where it applies. Our RERA guide shows how.
How can Realty Hunting help with commercial property?
We help you find offices, shops, SCO and pre-leased units, vet the lease and the title, and connect you with the right people. Reach out and we will shortlist options that fit your budget and yield target.