Is buying a home in India better than renting?

It depends on the property price, loan interest rate, rental yield, and expected appreciation. In most Indian metros, buying makes sense when the price-to-rent ratio is below 20 and appreciation exceeds 6-7% per year. Use GoWinDhan to model your specific scenario.

How do I calculate home loan ROI in India?

Enter the home price, loan interest rate, down payment percentage, monthly rent, and expected property appreciation. GoWinDhan computes DCF-adjusted CAGR, break-even year, total interest paid, and compares your home wealth against an equivalent S&P 500 SIP investment.

What is the EMI for a home loan in India?

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the loan amount, R is the monthly interest rate, and N is the number of months. For example, an ₹80 lakh loan at 8.5% for 20 years has an EMI of approximately ₹69,400 per month.

What is a good rental yield in India?

In Indian metros, gross rental yield typically ranges from 2% to 4%. A yield above 3% is generally considered favourable. IT corridors in Hyderabad, Bangalore and Pune tend to offer higher yields (3-4%) compared to premium micro-markets in Mumbai or South Delhi (1.5-2.5%).

Which areas in Hyderabad have the highest property appreciation?

Based on a blended 10-year trend (2014-2024) combining RBI House Price Index, Anarock and 99acres data, Narsingi, Puppalaguda, Financial District, Manikonda, and Gachibowli have seen the highest appreciation in Hyderabad, in the 10-11% per year range, driven by IT and BFSI office growth.

Should I invest in real estate or mutual funds in India?

Both have merit. Real estate provides leverage, rental income, and emotional security; mutual funds offer liquidity and compounding without maintenance burden. GoWinDhan compares home wealth (equity + rent + surplus SIP) against investing the same down payment and EMI into an S&P 500 index fund at 10.5% per year.

GoWinDhan - Go Win Dhan | Home Loan ROI Calculator India

Property & market parameters

📍 Auto-fill appreciation & rent growth from locality data Blended 10-yr trend · 2014–2024

City

Locality / micro-market

Home price ⓘ

₹

₹10 L₹10 Cr

₹1 Cr

Monthly rent ⓘ

₹

₹10 K₹5 L

Equivalent rent for this property

Property appreciation ⓘ

%/yr

Expected annual capital growth

Rent escalation ⓘ

%/yr

How fast rents rise each year

Maintenance + tax ⓘ

%/yr

Of property value annually

If renting, invest at ⓘ

%/yr

Expected MF / equity return (benchmark)

Loan structure

Loan interest rate ⓘ

Annual bank lending rate

Loan tenure ⓘ 20 years

5 yrs30 yrs

Down payment ⓘ 20%

5%60%

Est. monthly EMI —

Loan — Down — — yr

Home price—

Loan—

Down payment—

EMI / mo—

Rent / mo—

Rate—

Tenure—

🏠

— —

Monthly EMI

—

your monthly payment to bank

Total interest to bank

—

extra you pay on top of loan

Home value at end

—

estimated at your appreciation rate

Break-even point

—

equity + rent income > total paid

Est. tax savings / yr Sec 80C + 24B

—

at 30% slab · principal + interest deduction

Investment returns

Cash basis What you actually paid vs what you got back

Cash out of pocket invested

—

Down payment + net outflows where EMI+maint exceeded rent

Total wealth returned

—

Final equity + positive net cashflows when rent exceeded EMI+maint

Net gain ROI

—

Wealth − invested · return on cash out of pocket

DCF basis Outflows discounted to Year 0 — this gives the real time-adjusted CAGR

Down payment Year 0

—

Paid on day of purchase — already at present value

PV of net outflows discounted

—

Monthly (EMI+maint−rent) where >0, discounted to Year 0 at benchmark rate

Real CAGR DCF-adjusted

—

Wealth ÷ (down + PV outflows), annualised — compare to MF / FD rates

Home wealth vs S&P 500 SIP — over the years

Home wealth = net equity + cumulative rent income + S&P 500 gains from reinvesting rent surplus · S&P 500 SIP = same down payment invested as lump sum on day 1, plus the EMI amount added every month — all growing at 10.5% p.a. The crossing point (if any) is when buying overtakes the market.

Home wealth (equity + rent + SIP gains) S&P 500 SIP (down payment + EMI monthly)

Home investing vs Stock investing — full timeline

Home investing net gain

—

Equity + positive net cashflows when rent exceeded EMI+maint

Stock investing net gain S&P 500

—

Down payment (day 1) + monthly outflow invested at 10.5%/yr

Year	EMI + maint	Rent saved	Net outflow (EMI+maint − rent)	Invested this yr (S&P 500)	Stock portfolio (S&P 500)

Rental cash flow over time

Sage bars = rent received · Rose bars = EMI + maintenance · Steel line = cumulative net cash flow (right axis). When the line crosses zero, the investment breaks even on a cash basis.

Rent received EMI + maintenance Cumulative net CF SIP portfolio (S&P 500)

Outflow breakdown & Returns breakdown

Where your money goes

Total paid: —

What you get back

Total returns: —

Final wealth — Home vs benchmarks

Same starting capital: — (PV of all your outflows) invested for — years. Benchmarks use long-run historical averages — past returns don't guarantee future results.

Annual cost breakdown — principal · interest · maintenance

CAGR % (DCF-adjusted) — Tenure × Down payment

Annualised return on cash out of pocket. Compare directly to MF returns. White border = your selection.

Filter by EMI range

Min EMI —

Max EMI —

Total ROI % — Tenure × Down payment

Nominal return on actual cash paid. Includes rent avoided as benefit. White border = your selection.

Filter by EMI range

Min EMI —

Max EMI —

Annual rental income

Rent collected from tenants each year — a direct cash inflow benefit of owning the property.

Year	Rental income (annual)	YoY growth (year-on-year %)	Cumulative (running total)	% of outflow (rent ÷ total paid)

Year-by-year loan repayment schedule

Year	EMI paid (annual total)	Principal (reduces loan)	Interest (bank's fee)	Maintenance (incl. tax)	Loan balance (outstanding)	Home value (estimated)	Net equity (value − loan)	Rental income (this year)	Cumul. rental (running total)

Property A

Home price

₹

Monthly rent

₹

Interest rate

Appreciation

%/yr

Rent escalation

%/yr

Maintenance

%/yr

Alt. investment return

%/yr

Tenure 20 years

5 yrs30 yrs

Down payment 20%

5%60%

Property B

Home price

₹

Monthly rent

₹

Interest rate

Appreciation

%/yr

Rent escalation

%/yr

Maintenance

%/yr

Alt. investment return

%/yr

Tenure 20 years

5 yrs30 yrs

Down payment 20%

5%60%

Locality Insights

Select a city and locality to see schools, traffic, major employers, amenities, and investment outlook. More cities added weekly.

City

Locality

Does buying your home actually pay off?