Commercial Property Yield Calculator
Work out the gross and net yield on a commercial property and see how lease escalations lift your return over time.
Commercial property
Gross rental yield
7.20%
Net yield 6.20% per year
- Annual rent (now)
- ₹14,40,000
- Net annual income
- ₹12,40,000
- Rent in year 5
- ₹17,50,329
- Yield in year 5
- 8.75%
Commercial properties typically yield 6–10% — higher than residential — and usually carry built-in lease escalations (often ~5% every 3 years). Factor in longer vacancy gaps and tenant quality.
Frequently Asked Questions
What is the difference between gross and net yield?
Gross yield is annual rent divided by the property value. Net yield first subtracts annual costs such as maintenance, property tax and vacancy, so it gives a more realistic picture of the return.
What is lease escalation?
Commercial leases often include a periodic rent increase, agreed in the lease deed. The calculator applies your escalation rate each year to show how the rent and yield grow over time.
Are the TerraNexxus calculators free to use?
Yes — every calculator and tool on TerraNexxus is completely free to use, with no sign-up or login required.
How accurate are these property and loan calculators?
They use standard, widely-accepted formulas to give a close estimate. For exact figures (loan eligibility, EMI, stamp duty, tax), always confirm with your bank, lender or a qualified financial advisor.
Do the calculators work on mobile?
Yes, all tools are fully responsive and work smoothly on mobile, tablet and desktop browsers.
Is the data I enter stored or shared?
No. Calculations run entirely in your browser — TerraNexxus does not store, track or share the values you enter.