Your own home starts with the down payment.Home down payment calculator: the SIP to save it, and the EMI after.

How to use the dream home calculator

1. Enter what the home would cost today and the years until you plan to buy it.
2. Enter how much you expect property prices to rise each year, the down payment you plan to make as a percentage, and an expected return a year while you save.
3. Enter the home loan rate and the loan years. Then see the price when you buy, the down payment needed, the monthly SIP for it and the EMI on the rest.

How to read your result

Price when you buy is what the home may cost then. Down payment needed is the part you pay from your own money. Monthly SIP is what you may invest from today to build it, and EMI is the monthly loan payment on the rest.

For example, a home that costs ₹40 lakh today could cost about ₹51 lakh in 5 years, if prices rise 5% a year. A 20% down payment is about ₹10.2 lakh. At an assumed 8% return a year, that’s a SIP of about ₹13,800 a month. A loan of the remaining ₹40.8 lakh for 20 years, at an assumed 9% rate, means an EMI of about ₹36,700 a month.

A bigger down payment means a smaller loan and a lower EMI. Remember the other costs too, like registration, stamp duty, furniture and moving, which this calculator doesn’t count. Mutual fund returns are market-linked and not guaranteed, and for a goal only a few years away, a modest rate is safer. Check the loan rate with your bank; the EMI calculator helps you compare loans.

Once the home is yours, think about the loan too. Term insurance can help your family pay it off if you’re not there.

How the dream home calculator works

First it grows today’s price by the yearly price rise to find the price when you buy. The down payment is your chosen share of that price, and the calculator finds the monthly SIP that could build it by then. The rest becomes the loan, and the EMI uses the standard loan formula. P is today’s price, g is the yearly price rise, t is the years until you buy, d is the down payment share, i is the expected return a year divided by 12, n is the months of saving, L is the loan amount, j is the loan rate divided by 12 and m is the loan months.

Price then = P × (1 + g)^t; Down payment = Price then × d; Monthly SIP = Down payment ÷ (({[1 + i]^n − 1} ÷ i) × (1 + i)); Loan L = Price then − Down payment; EMI = L × j × (1 + j)^m ÷ ([1 + j]^m − 1)