How do you use the SIP vs real estate calculator?
- Enter the property price, the rent you expect, the yearly price growth and SIP return you want to test, and how many years to compare.
- Pick new flat or resale. Stamp duty and registration are worked out at Bengaluru rates.
- Read who is ahead and by how much. Down payment, loan, rent growth, upkeep, selling cost and the government rates are under “Adjust rates, loan and costs”.
Is a SIP better than buying property to rent out?
It depends on the growth you assume. This calculator puts the same cash into both. On day one, the down payment plus stamp duty and registration either buys the flat or goes into the SIP. Every month after that, whatever the flat costs beyond its rent (EMI and upkeep, less the rent) also goes into the SIP. If the rent is more than those costs, the spare rent is invested on the property side.
At the end, the property side is the sale value, less the selling cost and the loan still owed, plus any spare rent invested. The SIP side is the fund value. Both are before tax.
How the comparison is worked out
Lower of price × (1 − down payment %) and the RBI loan-to-value limitDown payment + stamp duty + cess + surcharge + registrationEMI + upkeep ÷ 12 − rent → into the SIP if positive, else spare rent investedPrice × (1 + growth)^years − selling cost − loan owed + spare rent investedWorked 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: the down payment plus ₹ 7,60,000 of stamp duty and registration. Rent starts at ₹ 30,000 a month and grows 5% a year; upkeep is ₹ 60,000 a year. Over 10 years, ₹ 71,42,368 goes in on each side.
At 7% price growth, the flat is worth ₹ 1,96,71,514 after 10 years. After a 2% selling cost and the ₹ 52,49,537 loan still owed, the property side is ₹ 1,40,28,547. The same cash in a SIP at 12% grows to ₹ 1,76,74,437, ahead by ₹ 36,45,891.
How price growth changes the result
| Price growth | Property, net | SIP | Ahead |
|---|---|---|---|
| 5% | ₹ 1,07,13,631 | ₹ 1,76,74,437 | SIP by ₹ 69,60,807 |
| 7% | ₹ 1,40,28,547 | ₹ 1,76,74,437 | SIP by ₹ 36,45,891 |
| 9% | ₹ 1,79,50,627 | ₹ 1,76,74,437 | Property by ₹ 2,76,190 |
| 11% | ₹ 2,25,76,789 | ₹ 1,76,74,437 | Property by ₹ 49,02,352 |
What should you keep in mind?
- Price growth, rent and SIP returns are assumptions. Mutual fund returns are not assured and property prices vary by locality.
- Tax is left out on both sides. Capital gains tax, tax on rent and any home loan deductions change the result; check them with your Chartered Accountant.
- A flat may sit empty between tenants, and a sale can take months, while SIP units can usually be sold in days.
- If you buy, have a property lawyer check the title and approvals.
Frequently asked questions
Related answers and guides
- Rent vs Buy Bengaluru: How to Work It Out for Your Flat
- Pre-Launch EOI Risk: Real Estate Investment Consultant View
- Commercial vs Residential Property Investment: What Changes
- Cheap vs Expensive Homes: When Each Is a Bad Investment
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.
- RBI loan-to-value limits for individual housing loans. Growth, rent and return figures are your inputs, not forecasts.
Indicative only and before tax. 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.