REIT/InvIT Yield & Tax Calculator
The headline yield and what you actually keep after tax
REIT/InvIT Yield & Tax Calculator
Gross annual distribution
0
at the stated yield
Tax on the taxable portion
0
interest/dividend slice taxed at your slab
Post-tax effective yield
0%
what you actually keep
Three components, three tax treatments
REIT/InvIT distributions are typically a mix of interest (taxed at your slab), dividend (taxed at slab unless the SPV opted for the old corporate tax regime), and return of capital (tax-deferred, reduces your cost basis until sale) — the taxable share varies by trust and by year.
Return of capital isn't tax-free forever
The return-of-capital portion reduces your acquisition cost; when you eventually sell the units, that reduction increases your taxable capital gain — it defers tax, it doesn't eliminate it.
Check the actual breakup, don't assume
Each REIT/InvIT publishes its distribution breakup (interest/dividend/capital-return split) with every payout — this varies significantly between trusts and even between quarters for the same trust.
Simplified model: assumes the "taxable share" input represents the interest-plus-dividend component taxed at your slab rate, with the remainder treated as return-of-capital (tax-deferred, not tax-free). Real REIT/InvIT distributions vary in composition trust-by-trust and quarter-by-quarter — check the actual distribution breakup published by the trust rather than assuming a fixed split. Capital gains on eventual unit sale aren't modeled here. Not tax advice.
Frequently asked questions
What is CAGR and how is it different from average return?
CAGR (Compound Annual Growth Rate) is the single steady annual rate that would take your starting value to your ending value over the period, accounting for compounding. A simple average of yearly returns can be misleading -- a 50% gain followed by a 50% loss averages to 0%, but you'd actually be down 25%. CAGR reflects what actually happened to your money.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Is SIP better than a lump sum investment?
Neither is universally better -- a SIP (spreading investment across regular installments) reduces the risk of investing everything right before a downturn and suits regular income, while a lump sum captures more time in the market if invested when prices are relatively low. For most people investing from salary, SIP is the practical default; a lump sum windfall is often still better invested promptly rather than staggered indefinitely.Read more: Your “Financial Advisor” Is Probably Just a Salesperson on Commission
How does compounding actually grow money over time?
Compounding means your returns start earning their own returns, not just your original investment. The effect is small in early years and accelerates sharply later -- which is why starting early matters more than almost any other single investing decision, even more than the exact return rate.Read more: SEBI’s SCORES Portal Promises a 21-Day Fix — Here’s What That Timeline Doesn’t Tell You
What's a realistic long-term return to assume for equity investments?
Long-term equity returns vary a great deal by market and period, and past performance never guarantees future results. Most long-term financial plans use a conservative, inflation-aware assumption rather than recent bull-market numbers -- this calculator lets you test your own assumption and see how sensitive the outcome is to it.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Estimates only, not financial advice. See our Disclaimer.
