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Taqdeer Builders
Taqdeer Builders

Property ROI Scenario

Compare a purchase-and-sale scenario with a fixed deposit, using your own assumptions

Illustrative scenario, not a forecast or investment advice. Every rate below is your assumption.

Your assumptions

₹1,20,00,000
₹10,00,000₹10,00,00,000
5% p.a.
-5%15%
5 years
1 year15 years

Loan assumptions

₹45,00,000

Down payment: ₹75,00,000. Slider capped at 80% of price for this illustration; your lender sets the real limit.

8.5%
20 years

Illustrative monthly EMI

₹39,052

60 EMIs paid over the holding period; the outstanding principal is repaid from the sale.

Interest rates change; confirm with your bank.

Property gain in this scenario (illustrative)

₹15,06,533

IRR 3.3% p.a.on ₹98,43,123 put in over 5 years

Assumed sale value after 5 years at 5% p.a.: ₹1,53,15,379

How the property gain is built

Sale value (price × (1 + appreciation)^years)₹1,53,15,379
Less: outstanding loan principal at sale-₹39,65,723
Net proceeds₹1,13,49,656
Down payment (month 0)₹75,00,000
EMIs paid (60 months)₹23,43,123
of which interest₹18,08,846
Total cash contributed₹98,43,123
Property gain (net proceeds - contributed)₹15,06,533
Annualised (IRR on monthly cash flows)3.3% p.a.

Same cash flows in fixed deposits (your assumed rate)

7%

Assumes the same amounts are placed in fixed deposits on the same dates (down payment at the start, then an amount equal to each EMI every month), compounded quarterly. A single FD does not accept monthly top-ups; this models a series of deposits or a recurring deposit.

Total cash contributed₹98,43,123
FD value after 5 years₹1,34,03,761
FD gain₹35,60,638
FD annualised (IRR)7.2% p.a.
Property net proceeds₹1,13,49,656
Property scenario behind FDs by₹20,54,106

Assumptions behind these results

  • Purchase price ₹1,20,00,000; appreciation 5% p.a., compounded yearly; held 5 years.
  • Loan ₹45,00,000 at 8.5% p.a. over 20 years, reducing balance, EMIs monthly from month 1.
  • FD rate 7% p.a., compounded quarterly, on each deposit from its date.
  • Annualised figures are internal rates of return on monthly cash flows, annualised as (1 + monthly rate)^12 - 1.

Not included

  • Taxes: capital gains tax on the sale, and TDS or income tax on FD interest
  • Stamp duty and registration
  • Brokerage
  • Maintenance
  • Property tax
  • Rental income

Illustrative scenario, not a forecast or investment advice. Outcomes depend on the market, the property and costs not modelled here. Consult a financial adviser before deciding.

What this tool does

It works through one scenario you define: purchase price, an appreciation rate you assume and an optional loan, and compares it with fixed deposits made on the same dates at a rate you assume. Both sides are annualised as a cash-flow IRR.

What it does not do

It does not forecast prices, rents or interest rates. It leaves out capital gains tax, TDS on FD interest, stamp duty, registration, brokerage, maintenance, property tax and rental income.

Before you decide

Illustrative scenario, not a forecast or investment advice. Speak to a financial adviser and a lawyer before committing money.