How do you use the FD vs property calculator?
- Enter the property price, the rent you expect, the FD rate, the yearly price growth you want to test, how many years to compare and your tax slab.
- Down payment, loan, rent growth, upkeep, selling cost, new flat or resale, and the stamp duty and registration rates are under “Adjust rates, loan and costs”.
- Read who is ahead after tax and by how much. The table below shows where each figure comes from.
Is a fixed deposit better than buying a flat to rent out?
It depends mostly on how fast the flat’s price grows. An FD gives a known rate, but the interest is taxed every year at your slab. A flat earns rent and may gain in value, but it costs stamp duty and registration up front, EMIs and upkeep every month, and capital gains tax when you sell.
This calculator gives both sides the same cash. On day one, the down payment plus stamp duty and registration either buys the flat or goes into an FD. Every month after that, whatever the flat costs beyond its rent also goes into the FD. If the rent is more than the costs, the spare rent goes into an FD on the property side.
How the comparison is worked out
Interest compounds quarterly at FD rate × (1 − slab × 1.04)EMI + upkeep ÷ 12 + tax on rent − rent → into the FD if positiveslab × 1.04 × (rent × 70% − loan interest), not below 0Sale value − selling cost − loan owed − 13% of the gain + spare rent in an FDWorked example: ₹ 1 crore resale flat over 10 years
With 25% down, the loan is ₹ 75 lakh at 8.5% over 20 years, an EMI of ₹ 65,087. Day one costs ₹ 32,60,000, including ₹ 7,60,000 of stamp duty and registration. Rent starts at ₹ 30,000 a month and grows 5% a year. Over 10 years, ₹ 71,42,368 goes in on each side.
At 7% growth the flat is worth ₹ 1,96,71,514. After the selling cost, the ₹ 52,49,537 still owed and ₹ 11,07,351 of capital gains tax, the property side is ₹ 1,29,21,196. The same cash in an FD at 6.5%, taxed at the 30% slab, grows to ₹ 1,00,66,722. If you pay no tax on the interest, the FD reaches ₹ 1,18,12,102.
How price growth changes the result
| Price growth | Property, net | FD | Ahead |
|---|---|---|---|
| 3% | ₹ 76,07,494 | ₹ 1,00,66,722 | FD by ₹ 24,59,228 |
| 5% | ₹ 1,00,37,219 | ₹ 1,00,66,722 | FD by ₹ 29,504 |
| 7% | ₹ 1,29,21,196 | ₹ 1,00,66,722 | Property by ₹ 28,54,473 |
| 9% | ₹ 1,63,33,406 | ₹ 1,00,66,722 | Property by ₹ 62,66,684 |
What should you keep in mind?
- Price growth, rent and the FD rate are assumptions. Property prices vary by locality; check what banks pay when you invest. SBI’s 5-year FD rate for the general public was 6.05% as of 19 Oct 2026.
- Tax is simplified: rent is taxed as under the new regime, where a let-out loss is not set off. In the old regime, up to ₹ 2 lakh of loss can reduce your other taxable income. Check your own figures with your Chartered Accountant.
- A flat may sit empty between tenants and can take months to sell; an FD can usually be broken early for a small penalty.
- If you buy, have a property lawyer check the title and approvals.
Frequently asked questions
Related answers and guides
- Prepay Your Home Loan or Invest the Surplus?
- Rent vs Buy Bengaluru: How to Work It Out for Your Flat
- Commercial vs Residential Property Investment: What Changes
- Resale vs New Flat in Bengaluru: Price, Tax and Risk in 2026
Sources
- Karnataka Stamp Act, 1957 and Revenue Department notification RD/46/MNMU/2025 (registration fee 2% from 31 August 2025). Rates verified 18 Oct 2026.
- Income-tax Act, 2025: section 22 (income from house property, 30% deduction), section 197 (12.5% long-term capital gains on property held more than 24 months), 4% cess. RBI loan-to-value limits for housing loans. State Bank of India retail term deposit rates (w.e.f. 15 Dec 2025), checked 19 Oct 2026.
Indicative only. Verify the tax position with your Chartered Accountant before acting, and confirm stamp duty and registration on Kaveri Online before registering.
Buying a home in Bengaluru? Talk to an acre&key advisor.