How do you use the break-even calculator?
- Enter the price, pick the property type and set the down payment. The loan stays within RBI limits.
- Enter the monthly rent, the maintenance you pay and the yearly price growth you want to test.
- Open “Adjust rates, loan and costs” for property tax, insurance and repairs, selling costs, a yearly rent rise and the loan terms.
- Read the year you break even and the table showing where you would stand if you sold in different years.
What does break-even mean for a property?
You break even in the first year in which selling would give back all the cash you have put in: the down payment, stamp duty and registration, and every month you topped up the EMI and costs because the rent fell short. The sale price, less selling costs and the loan still owed, has to cover all of it.
There is a second, stricter test: whether the rent alone covers the EMI and running costs. If it does, the cash you put in comes back from rent over time even if prices stay flat. If it does not, break-even relies entirely on the price rising.
How it is worked out
Down payment + stamp duty, cess, surcharge and registrationΣ (rent − maintenance − yearly costs − EMIs)Price × (1 + growth)^t × (1 − selling %) − loan owed + step 2 − step 1The first year in which step 3 is zero or moreWorked example: ₹ 1 Cr flat let at ₹ 30,000
With 25% down you put in ₹ 32,60,000, including ₹ 7,60,000 of charges. The EMI of ₹ 65,087 plus ₹ 9,167 of running costs is ₹ 74,253 a month, so you top up ₹ 44,253 a month from your own pocket.
If prices grow 6% a year, selling at the end of year 4 gives back all of that with ₹ 1,69,110 to spare, so you break even in year 4. At 3% growth it takes until year 13. Selling in year 10 at 6% leaves you ₹ 37,30,362 ahead.
Worked example: ₹ 45 L first-sale flat
The first sale of a flat at ₹ 45 L pays 3% stamp duty, so charges are ₹ 2,41,200. With 20% down you put in ₹ 11,41,200. Let at ₹ 15,000 with ₹ 2,500 maintenance and ₹ 22,000 of yearly costs, you top up ₹ 20,575 a month, and at 6% growth you break even in year 3.
How do growth and down payment change break-even?
| Price growth | 25% down | 50% down | Bought outright |
|---|---|---|---|
| 0% a year | Year 37 | Year 26 | Year 4 |
| 3% a year | Year 13 | Year 6 | Year 2 |
| 6% a year | Year 4 | Year 3 | Year 2 |
| 9% a year | Year 2 | Year 2 | Year 1 |
A bigger loan means smaller cash in but larger top-ups and interest. With flat prices, the flat bought outright breaks even in year 4, because the sale returns the price and the rent covers the costs; with 25% down it takes until year 37, as the monthly top-ups pile up.
What stamp duty and registration apply in Bengaluru?
On a sale deed in Bengaluru, Karnataka charges 5% stamp duty on the market value (Karnataka Stamp Act, Schedule Art. 20(1)), a 10% cess on the duty (s.3B) and, inside the Greater Bengaluru Area, a 2% surcharge on the duty (Greater Bengaluru Governance Act 2024, s.170). The registration fee is 2% (IGR notification of 29 Aug 2025, in force from 31 Aug 2025). Together that is 7.6% of the value. The first sale of a flat pays less duty: 2% up to ₹ 20 L and 3% above ₹ 20 L up to ₹ 45 L, so the total is 4.24% or 5.36%. Resale flats, plots and houses pay 5% at any price. Rates verified 18 Oct 2026 · confirm on Kaveri Online before registering.
What does this calculator leave out?
- Empty months between tenants. Lower the rent to allow for them, or see the property cash flow calculator.
- Tax on rent and capital gains tax on the sale. Ask your CA.
- The return you could have earned on the same money elsewhere. See the property investment score.
Frequently asked questions
Related answers and guides
- Prepay Your Home Loan or Invest the Surplus?
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- Commercial vs Residential Property Investment: What Changes
- Is It a Good Time to Buy Property in Bangalore? 2026 Data
Sources
- RBI loan-to-value limits: RBI Master Circular on housing finance.
- Stamp duty 5% (Schedule Art. 20(1)), first-sale flat slabs (Art. 20(2A)) and 10% cess (s.3B): Karnataka Stamp Act 1957, consolidated copy (DPAL); ₹ 35–45 L slab: Karnataka Stamp (Amendment) Act 2021.
- 2% surcharge on duty in the Greater Bengaluru Area: Greater Bengaluru Governance Act 2024, s.170.
- Registration fee 2%: IGR Karnataka, Table of Registration Fees (Notification RD/46/MNMU/2025) and IGR press note, 29 Aug 2025.
- Rates verified 18 Oct 2026 · confirm on Kaveri Online before registering.
- EMI and loan balance: standard reducing-balance formulas. Rent, costs, growth and selling costs: your inputs.
Indicative figures from the numbers you enter, not a forecast or advice to invest. For tax questions, indicative only. Please verify with your Chartered Accountant before acting.
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