Should I Take This Home Loan?

EMI affordability, rent vs. buy break-even, and opportunity cost — all in one place.

Affordability

Loan Details

Property price

₹

Total all-in price including parking

Down payment20%

Down payment: ₹16,00,000Loan amount: ₹64,00,000

Interest rate8.5%

Floating rates in India: 8.5–9.5% (Apr 2026)

Loan tenure20 yrs

Your Finances

Monthly take-home income

₹

Existing monthly EMIs

₹

Car loan, personal loan, etc.

Liquid savings (FD + savings + MF)

₹

What's accessible within 30 days

Purpose

Buying to…

Property type

Status

First home

⚠️ Proceed with caution

A few items need attention before you commit.

4 of 6 checks passed

Monthly EMI

₹55,541

37.0% of income

Cash needed upfront

₹22,39,000

DP + all hidden costs

Total interest paid

₹69,29,765

over 20 years

Loan multiple

3.6×

annual income (limit: 5×)

!EMI ≤ 30% of income — 37.0% of income

✓Total EMIs ≤ 50% of income — 37.0% combined

✓Down payment ≥ 20% — 20% paid (₹16,00,000)

✓Loan ≤ 5× annual income — 3.6× income

✗Emergency fund intact — 1.7 months remaining

✓Upfront cash covers all costs — Need ₹22,39,000, have ₹25,00,000

Hidden Costs Estimate

Stamp duty (~6%)₹4,80,000

Registration (~1%)₹80,000

Processing fee (~1%)₹64,000

Legal charges₹15,000

Total hidden costs₹6,39,000

Total cash needed (DP + costs)₹22,39,000

Estimates only — stamp duty varies by state (2–8%). Add these to your down payment planning.

Rent vs. Buy

Comparison Inputs

Current monthly rent you pay

₹

0 if living with family or own home

Expected property appreciation6%/yr

Historical Indian residential: 4–8%/yr. Prime metro: 7–9%.

Investment horizon10 yrs

Intangible value of owning your home: Stability, ability to customise, no landlord risk, and the psychological security of a permanent home are real but hard to quantify. If the finances are borderline, these non-financial benefits may tip the decision.

Tax benefits (old regime): Section 24(b) allows interest deduction up to ₹2L/yr. Section 80C counts principal repayment toward the ₹1.5L limit (shared with EPF/PPF/ELSS).

True Monthly Cost of Ownership

EMI₹55,541

Maintenance (~0.5%/yr)₹3,333

Property tax (~0.2%/yr)₹1,333

Opportunity cost on down pmt₹14,667

True monthly cost₹74,874

vs. current rent+₹44,874 more/month

Rent vs. Buy Break-even

Year 1

Property appreciation offsets the ownership premium at year 1. Owning becomes cheaper after this point.

Property vs. Equity at 10 Years

Property equity₹98,47,177

If invested in Nifty 50 (11% CAGR)₹1,35,47,679

Equity scenario: down payment + ₹44,874/mo ownership premium invested at 11% CAGR.

Scenario Analysis

Scenario	Property value	Outstanding	Net equity
Optimistic	₹2,07,49,940	₹44,79,605	₹1,62,70,335
Base	₹1,43,26,782	₹44,79,605	₹98,47,177
Pessimistic (sale yr 7)	₹91,89,485	₹52,33,865	₹39,55,620

Pessimistic scenario assumes forced sale in year 7 (job loss, relocation, etc.).

See how this loan affects your FIRE date

Add your EMI (₹56K/mo) as a monthly expense in the FIRE calculator to see the full impact on your retirement timeline.

Open FIRE Calculator →