home loan vs rent calc 1

LoanIRRHouse Purchase vs. Rent Decision(Change only the cells highlighted in blue)

Purchase assumptionsRent assumptionBase price5,000,000Home equity portion saved1,264,500Property typenew(Enter new/old)Yield on investment %9.00%0.72%Rent cap rate3.0%Loan%80%Starting rent12,500Equity portion1,000,000Nonrefundable Deposit 75,000Indirect taxesBroker fee12,500Stamp duty5.00%250,000Rent escalation rate7.0%Registration1.00%50,000Monthly Net salary65,000VAT1.00%50,000Annual salary growth%11%Service tax3.09%154,500Basic30%Total indirect taxes504,500HRA15%DA0%Loan amount4,240,00017667Equity1,264,500

Annual ratePeriodic rateTenure24020Interest10.5%0.84%Marginal tax rate30%80C investments made per year50,000

Property price Apprctn10.00%0.83%Property terminal value33,637,500

PurchaseRentIRR11.8%9.6%

MonthBg. DebtEMIInterestPrincipal RpmtCl. DebtTax benefit u/s 24 and 80CEquity CFRentEMI-Rent(EMI-Rent) invested in Bank FDNet SalaryBasicHRADATax benefitCF04,240,0000004,240,000-1,264,500-1,352,00014,240,00040,99135,4265,5654,234,435-35,42612,50028,491158,530-12,50024,234,43540,99135,3795,6114,228,824-35,37912,50028,491157,396-12,50034,228,82440,99135,3325,6584,223,166-35,33212,50028,491156,269-12,50044,223,16640,99135,2855,7054,217,461-35,28512,50028,491155,151-12,50054,217,46140,99135,2385,7534,211,708-35,23812,50028,491154,041-12,50064,211,70840,99135,1895,8014,205,907-35,18912,50028,491152,939-12,50074,205,90740,99135,1415,8504,200,057-35,14112,50028,491151,844-12,50084,200,05740,99135,0925,8984,194,159-35,09212,50028,491150,758-12,50094,194,15940,99135,0435,9484,188,211-35,04312,50028,491149,679-12,500104,188,21140,99134,9935,9974,182,214-34,99312,50028,491148,608-12,500114,182,21440,99134,9436,0474,176,167-34,94312,50028,491147,544-12,500124,176,16740,99134,8936,0984,170,06960,00025,10712,50028,491146,489780,000234,000117,000035,10022,600134,170,06940,99134,8426,1494,163,920-34,84213,37527,616140,974-13,375144,163,92040,99134,7906,2004,157,719-34,79013,37527,616139,965-13,375154,157,71940,99134,7386,2524,151,467-34,73813,37527,616138,963-13,375164,151,46740,99134,6866,3044,145,163-34,68613,37527,616137,969-13,375174,145,16340,99134,6336,3574,138,806-34,63313,37527,616136,982-13,375184,138,80640,99134,5806,4104,132,396-34,58013,37527,616136,001-13,375194,132,39640,99134,5276,4644,125,932-34,52713,37527,616135,028-13,375204,125,93240,99134,4736,5184,119,414-34,47313,37527,616134,062-13,375214,119,41440,99134,4186,5724,112,842-34,41813,37527,616133,103-13,375224,112,84240,99134,3636,6274,106,215-34,36313,37527,616132,150-13,375234,106,21540,99134,3086,6824,099,533-34,30813,37527,616131,205-13,375244,099,53340,99134,2526,7384,092,79460,00025,74813,37527,616130,266865,800259,740129,870038,96125,586254,092,79440,99134,1966,7954,086,000-34,19614,31126,679124,949-14,311264,086,00040,99134,1396,8514,079,148-34,13914,31126,679124,055-14,311274,079,14840,99134,0826,9094,072,240-34,08214,31126,679123,167-14,311284,072,24040,99134,0246,9664,065,273-34,02414,31126,679122,286-14,311294,065,27340,99133,9667,0254,058,249-33,96614,31126,679121,411-14,311304,058,24940,99133,9077,0834,051,166-33,90714,31126,679120,542-14,311314,051,16640,99133,8487,1424,044,023-33,84814,31126,679119,679-14,311324,044,02340,99133,7887,2024,036,821-33,78814,31126,679118,823-14,311334,036,82140,99133,7287,2624,029,559-33,72814,31126,679117,973-14,311344,029,55940,99133,6687,3234,022,236-33,66814,31126,679117,128-14,311354,022,23640,99133,6067,3844,014,852-33,60614,31126,679116,290-14,311364,014,85240,99133,5457,4464,007,40660,00026,45514,31126,679115,458961,038288,311144,156042,87128,560374,007,40640,99133,4837,5083,999,898-33,48315,31325,677110,328-15,313383,999,89840,99133,4207,5713,992,328-33,42015,31325,677109,538-15,313393,992,32840,99133,3577,6343,984,694-33,35715,31325,677108,754-15,313403,984,69440,99133,2937,6983,976,996-33,29315,31325,677107,976-15,313413,976,99640,99133,2287,7623,969,234-33,22815,31325,677107,203-15,313423,969,23440,99133,1647,8273,961,407-33,16415,31325,677106,436-15,313433,961,40740,99133,0987,8923,953,514-33,09815,31325,677105,675-15,313443,953,51440,99133,0327,9583,945,556-33,03215,31325,677104,918-15,313453,945,55640,99132,9668,0253,937,531-32,96615,31325,677104,168-15,313463,937,53140,99132,8998,0923,929,440-32,89915,31325,677103,422-15,313473,929,44040,99132,8318,1593,921,280-32,83115,31325,677102,682-15,313483,921,28040,99132,7638,2283,913,05260,00027,23715,31325,677101,9471,066,752320,026160,013045,52630,213493,913,05240,99132,6948,2963,904,756-32,69416,38524,60696,993-16,385503,904,75640,99132,6258,3663,896,390-32,62516,38524,60696,298-16,385513,896,39040,99132,5558,4363,887,955-32,55516,38524,60695,609-16,385523,887,95540,99132,4848,5063,879,449-32,48416,38524,60694,925-16,385533,879,44940,99132,4138,5773,870,872-32,41316,38524,60694,246-16,385543,870,87240,99132,3428,6493,862,223-32,34216,38524,60693,572-16,385553,862,22340,99132,2698,7213,853,502-32,26916,38524,60692,902-16,385563,853,50240,99132,1978,7943,844,708-32,19716,38524,60692,237-16,385573,844,70840,99132,1238,8673,835,841-32,12316,38524,60691,577-16,385583,835,84140,99132,0498,9413,826,899-32,04916,38524,60690,922-16,385593,826,89940,99131,9749,0163,817,883-31,97416,38524,60690,271-16,385603,817,88340,99131,8999,0923,808,79260,00028,10116,38524,60689,6251,184,095355,228177,614048,32931,944613,808,79240,99131,8239,1673,799,624-31,82317,53223,45984,836-17,532623,799,62440,99131,7469,2443,790,380-31,74617,53223,45984,229-17,532633,790,38040,99131,6699,3213,781,059-31,66917,53223,45983,626-17,532643,781,05940,99131,5919,3993,771,660-31,59117,53223,45983,028-17,532653,771,66040,99131,5139,4783,762,182-31,51317,53223,45982,434-17,532663,762,18240,99131,4349,5573,752,625-31,43417,53223,45981,844-17,532673,752,62540,99131,3549,6373,742,988-31,35417,53223,45981,258-17,532683,742,98840,99131,2739,7173,733,271-31,27317,53223,45980,677-17,532693,733,27140,99131,1929,7983,723,473-31,19217,53223,4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PurchaseRentPeriodicAnnualizedPeriodicAnnualizedIRR0.94%11.8%0.77%9.59%

ExemptionsTax exemptionsExemptionPre-conditionITSec 24: You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower.Interest exemption can be availed only the house is in possessionSec 80C: Principal can be claimed up to the maximum of Rs. 100,000Principal repayment is one of the many items exempt including PPF, LIC etc. Maximum exemption is 100,000HRATax exemption is calculated as the least of the following:Rent paid in excess of 10% of basicActual HRA received50% of basic salary (40% for non-metro cities)