Put the same money to work two ways — a monthly SIP in mutual funds, or a property purchase — and compare what each is actually worth at the end.
Property
SIP
Value over time
Property net worth is home value minus any remaining loan balance and estimated selling costs; EMI and maintenance are treated as ongoing outflows, not added back to net worth. SIP corpus compounds the monthly contribution and lumpsum at the expected return, with an optional annual step-up. XIRR is solved from each option's actual monthly cash flow timeline, so the two are comparable even though the money goes in on different schedules. This is an illustrative estimate, not financial advice — real returns for both property and market-linked investments can vary significantly and are not guaranteed.
Buying a property with a home loan and investing the equivalent cash flow in a SIP are structurally similar: both involve an upfront outlay (down payment vs. lumpsum) followed by regular monthly contributions (EMI vs. SIP amount). This calculator puts them on equal footing by defaulting the SIP's monthly contribution and lumpsum to match the property's actual cash outflow — so you're comparing two ways of deploying the same money, not two arbitrarily different amounts.
Property returns are driven by appreciation and leverage but come with illiquidity, maintenance, and transaction costs at both ends. SIP returns depend on market performance and carry no leverage unless you count the compounding effect of a step-up — but the money stays liquid and requires no ongoing physical maintenance. Neither is "better" in the abstract; the right answer depends on your assumptions, time horizon, and how much you value liquidity versus a tangible asset.
Property Cash Flow: −(Down Payment + Purchase Costs) at t=0, then −(EMI + Maintenance) each month, plus Net Sale Proceeds in the final monthNet Sale Proceeds = Home Value × (1 − Selling Costs %) − Remaining Loan BalanceSIP Cash Flow: −Lumpsum at t=0, then −Monthly SIP (growing with step-up) each month, plus Final Corpus in the final monthXIRR (either side) solved from its monthly cash-flow timeline, then annualized
Because both timelines are solved for XIRR the same way, the annualized returns are directly comparable — even though the property's cash flow is lumpy (interest-heavy EMIs early on, a large exit payment at the end) while the SIP's is smooth and regular.
Appreciation is strong relative to your loan rate (positive leverage), the holding period is long enough to dilute purchase and selling costs, and you're comfortable with an illiquid, maintenance-heavy asset for the duration.
Expected market returns comfortably exceed property appreciation, you want liquidity and flexibility, or the property's leverage isn't working in your favour (loan rate close to or above appreciation rate).
A lower down payment increases property's XIRR when appreciation exceeds the loan rate, but also increases risk if the market underperforms your assumption.
Even a modest annual step-up meaningfully increases the SIP's final corpus over long horizons — model it if your income (and therefore savings capacity) is expected to grow.
Both sides are highly sensitive to the appreciation and market-return assumptions you enter — use conservative, evidence-based figures rather than best-case numbers for either.
It depends on your specific appreciation and return assumptions, holding period, and how much you value liquidity. Property offers leverage and a tangible asset; SIPs offer liquidity and typically lower transaction costs — run your own numbers rather than relying on a generic answer.
To make the comparison fair — if you're deciding between buying and investing, the honest comparison uses the same monthly cash outflow for both options, not an arbitrary SIP amount.
XIRR accounts for the exact timing and size of every cash flow, not just a start and end value — essential here since the property's EMIs and the SIP's contributions are spread out monthly rather than being a single lump-sum investment.
Yes — because the cash flow timeline uses your actual down payment and EMIs (not the full property price), the resulting XIRR reflects the amplifying effect of financing the purchase.
Use a realistic, long-term average for the fund category you'd actually invest in. Overly optimistic assumptions on either side will distort the comparison.
No. This tool provides an illustrative estimate based on the assumptions you enter. Speak with a financial advisor and a floor.estate advisor before making a real investment decision.
Our advisors can help you stress-test your appreciation assumptions against real Indore locality data before you decide.