Which gives better returns, rent or FD?

FDs provide higher immediate cash flow (typically 6-7% vs 2-3% rental yield in India), but real estate wins long-term due to capital appreciation.

Are rental yields calculated pre-tax or post-tax?

Net rental yield should always be calculated post-tax. Rental income gets a flat 30% standard deduction under Section 24(a), lowering the effective tax rate compared to FD interest.

Rental Yield vs FD Calculator

Compare post-tax returns of real estate rental income vs fixed deposits using the Section 24(a) tax benefit.

Quick Summary: Rental Yield vs FD Calculator

In India, FDs typically offer 6-7% pre-tax yields, while residential rental yields hover around 2-3%. However, when factoring in the 30% standard deduction on rent and long-term capital appreciation (5-8% p.a.), real estate often outperforms FDs over a 10+ year horizon.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.