Rental Property Calculator India

What the calculator's loan amount doesn't cover

RBI's Master Circular – Housing Finance (February 2022) sets loan-to-value ceilings that this calculator's down-payment split implicitly assumes: up to ₹30 lakh — up to 90%; above ₹30 lakh and up to ₹75 lakh — up to 80%; above ₹75 lakh — up to 75%. Those ceilings apply to the property's cost, not to what you actually pay at registration, because the same circular tells banks to "not include stamp duty, registration and other documentation charges in the cost of the housing property they finance", with one exception: where the house costs ₹10 lakh or less, a bank may fold stamp duty and registration into the financed cost.

For every property above that ₹10 lakh line — which is effectively every deal this calculator is built for — stamp duty and registration sit entirely outside the loan. They belong in this calculator's Closing Costs field alongside the down payment, not folded into the financed amount, and the state government sets the actual percentage (it varies by state and, in several states, by the buyer's gender — confirm the current rate with your state's registration department before entering it).

Why the EMI in year five won't match year one

Since 1 October 2019, RBI has required that "all new floating rate personal or retail loans...to an external benchmark" — commonly the repo rate — with the lender setting its own spread but changing it only when the benchmark itself moves or the borrower's creditworthiness genuinely changes. If you're modelling a floating-rate loan in this calculator, the annual interest rate field is not a constant for the whole hold: it resets on whatever schedule your lender uses (typically quarterly) every time the Monetary Policy Committee changes the repo rate. RBI held the repo rate unchanged at 5.25% through every 2026 MPC meeting this registry could directly confirm (through June 2026) — that is not a permanent number, and the reader should check the current rate before treating any single-year EMI figure as fixed for the full hold period.

One consequence of the same rate regime is favourable to a long-hold investor: RBI's Pre-payment Charges on Loans Directions, 2025 bar lenders from charging foreclosure or pre-payment penalties on floating-rate loans to individuals for non-business purposes, for loans sanctioned or renewed on or after 1 January 2026. If the pro-forma shows strong cash flow in a later year and you want to prepay principal to improve the equity-build line this calculator tracks, a qualifying floating-rate loan carries no penalty for doing so — check your own sanction letter's date, since the rule only binds loans sanctioned or renewed from that date forward.

The tax regime changes what the pre-tax cash flow becomes

This calculator's cash flow is deliberately pre-tax. Which regime you file under changes how much of it you keep, and the two regimes now diverge more than they did before FY2023-24. Under the new (default) regime, the Income Tax Department's own FAQ states that "Interest on borrowed capital for Self-occupied property is not allowed as a deduction from Income from House Property" under Section 115BAC, and that Chapter VI-A deductions — the group Section 80C sits in — "cannot be claimed, except deduction u/s 80CCD(2)/80CCH/80JJAA" under the new regime.

This calculator models a rented (let-out), not self-occupied, property, and that FAQ page addresses the self-occupied case specifically — it does not state whether the same new-regime restriction extends to interest on a let-out property. Do not assume either way from this registry entry: confirm the let-out treatment for the regime you'll actually file under before using this calculator's pre-tax cash-flow line as a proxy for what reaches your bank account. Either way, Section 80C's ₹1,50,000 combined limit is an old-regime-only benefit and cannot be assumed available if you file under the new regime.

What the sale year owes that the pro-forma doesn't deduct

The pro-forma's net sale proceeds and the IRR that follows from them are computed before capital-gains tax. A government FAQ issued the day after the 2024 reform took effect confirms the property must be held 24 months to qualify as a long-term capital asset — unchanged by the 2024 simplification — and that for transfers made on or after 23 July 2024, the long-term capital gains rate on immovable property is 12.5% without indexation, down from 20% with indexation.

Reinvestment exemptions under Sections 54, 54B, 54D, 54EC, 54F and 54G were left unchanged by the 2024 reform, with Section 54EC bonds capped at ₹50 lakh of reinvestment — but this same FAQ does not state a rupee cap for a Section 54/54F rollover into another residential property, so this article does not supply one; check the current Section 54/54F cap directly with the Income Tax Department before relying on a figure from elsewhere.

There is no published yield figure to sanity-check this against

No official body — not RBI, not the National Housing Bank's RESIDEX index, not CREDAI, not the Ministry of Statistics — publishes a residential rental-yield or cap-rate series by Indian city. That means there is no authoritative number this calculator's output can be checked against; the year-one cap rate and cash-on-cash figures it produces are only as good as the rent and price you enter. Treat any city-level yield percentage you see elsewhere as a private estimate, not an official statistic, and build the pro-forma from your own building's actual asking rent and comparable sale prices instead.