How do you use the possession delay cost calculator?
- Enter how many months late the handover is against the date in your agreement, and the rent you pay while you wait.
- Enter what you have paid the builder so far, including loan money the bank has released, and how you pay the loan now: pre-EMI interest only, a full EMI, or no loan.
- Other monthly costs and the RERA interest rate are under “Other costs and RERA rate”.
What does a late handover really cost?
If the flat had come on time, you would have stopped paying rent. So every month of rent during the delay is an extra cost. Pre-EMI interest is also extra: it pays only interest, so your loan does not shrink and it ends that many months later. A full EMI is different. It keeps reducing the loan on the same schedule as an on-time handover, so it is not counted as a delay cost.
Under section 18 of the Real Estate (Regulation and Development) Act, 2016, if the builder does not hand over by the agreed date and you choose to stay in the project, the builder must pay you interest for every month of delay. In Karnataka, rule 16 of the 2017 RERA rules sets the rate at SBI’s highest MCLR plus 2%, which is 10.95% with the 8.95% MCLR from 15 October 2026.
How the figures are worked out
Loan disbursed × loan rate ÷ 12(Rent + pre-EMI + other costs) × months of delayAmount paid × (SBI highest MCLR + 2%) × months ÷ 12Delay cost − RERA interestWorked example: 12 months late on pre-EMI
Rent of ₹ 25,000, pre-EMI of ₹ 42,500 on a ₹ 60 lakh loan at 8.5% and ₹ 5,000 of other costs add up to ₹ 72,500 a month, or ₹ 8,70,000 for the year. With ₹ 80 lakh paid, RERA interest at 10.95% is ₹ 8,76,000, just ₹ 6,000 more than the cost, if it is claimed and paid. With less paid to the builder, the interest covers less: on ₹ 40 lakh paid it would be ₹ 4,38,000.
Worked example: 24 months late, no loan
A buyer who paid ₹ 40 lakh in cash and rents at ₹ 30,000 a month loses ₹ 7,20,000 in rent over two years. RERA interest on ₹ 40 lakh for 24 months is ₹ 8,76,000, which covers the rent with ₹ 1,56,000 to spare, if it is claimed and paid.
Cost at different delays
| Months late | Delay cost | RERA interest | Cost after interest |
|---|---|---|---|
| 6 | ₹ 4,35,000 | ₹ 4,38,000 | − ₹ 3,000 |
| 12 | ₹ 8,70,000 | ₹ 8,76,000 | − ₹ 6,000 |
| 18 | ₹ 13,05,000 | ₹ 13,14,000 | − ₹ 9,000 |
| 24 | ₹ 17,40,000 | ₹ 17,52,000 | − ₹ 12,000 |
| 36 | ₹ 26,10,000 | ₹ 26,28,000 | − ₹ 18,000 |
What should you keep in mind?
- Find the possession date in your agreement for sale and on the project’s page on the K-RERA site. Extensions granted by K-RERA can change it.
- You can also choose to leave the project and ask for a refund with interest. A lawyer can tell you which route fits your case.
- How delay interest is taxed depends on how it is paid and described. Check with your Chartered Accountant.
Frequently asked questions
Related answers and guides
- EMI During Builder Delay: Who Pays the Interest?
- Flat Possession Checklist Before Handover
- Delayed Possession Compensation RERA Karnataka Guide
- Buying Under-Construction in Bengaluru: 20 Questions
Sources
- Real Estate (Regulation and Development) Act, 2016, section 18 (return of amount and compensation). Checked 19 Oct 2026.
- Karnataka Real Estate (Regulation and Development) Rules, 2017, rule 16 (interest at SBI highest MCLR + 2%). Checked 19 Oct 2026.
- State Bank of India, MCLR with effect from 15 Oct 2026: three-year tenor 8.95%. Checked 19 Oct 2026.
Indicative only, not legal advice. Have your lawyer check your agreement and any K-RERA extension before you claim, and confirm the tax on interest with your Chartered Accountant.
Buying a home in Bengaluru? Talk to an acre&key advisor.