The other side of the decision
Every buying decision has a counterfactual: rent, and invest what you would have paid as an EMI. This calculator argues that side honestly, because a number you do not trust is worth nothing.
₹
₹ 1,000₹ 6 L a year₹ 10,00,000
yrs
1 yrs30 yrs
%
4.0 %Nifty 50 TRI has done ~12–13% over 20 years. Past returns are not a promise.20.0 %
Invested vs corpus
The gap is compounding. It is nearly flat for a decade, then it is not.
Read it against the EMI
₹ 50,000 a month for 20 years services a home loan of about ₹ 58 L at 8.5%. Invested instead at 12.0%, the same cheque becomes ₹ 5 Cr.
That is not a verdict. The loan buys an asset that also appreciates, gives you Section 24 interest relief of up to ₹2 L a year, and removes rent from your life at the end of it, while rent itself compounds against you at 5–8% a year. Run both numbers, then decide. Check the EMI and the rental yield on the same property.
Corpus after 20 years
₹ 5 Cr
₹ 50,000 a month at 12.0% p.a.
Invested24%
Gains76%
You put in
₹ 1.2 Cr
Growth on it
₹ 3.8 Cr
Multiple of money
4.16×
What this assumes
- ·Contributions at the start of each month, compounded monthly, with no step-up.
- ·A constant return: real equity returns are not constant, and the sequence matters more than the average.
- ·Pre-tax. Long-term capital gains on equity above ₹1.25 L a year are taxed at 12.5%.
- ·No exit load, expense ratio drag or missed instalments modelled.