Goal plan
SIP for a House Down Payment
Save a home down payment through a disciplined SIP, planned against inflation in property prices.
A down payment is usually a 5–8 year goal, long enough for equity SIPs to work but short enough that you should review the plan as you approach the target. The solver defaults to a ₹30 lakh down payment over 7 years.
Property prices inflate too, so a down payment that's 20% of today's price may be a smaller share of the future price. If you're targeting a percentage of a property's value, set the target in today's money and let the solver inflate it.
As you near the goal, consider gradually shifting accumulated gains into safer instruments so a late market dip doesn't force you to delay the purchase.
Related tools
In shortSave a down payment by back-solving the monthly SIP for the amount you will need, inflated by expected property-price growth. For horizons under about five years, assume a lower, debt-like return. Move accumulated money into safer funds as the purchase nears, because a market fall at the wrong time can delay the purchase.
Monthly SIP needed for ₹30.0 lakh, by time horizon
Required monthly SIP to have ₹30.0 lakh after tax, at an assumed 11% a year. The step-up column starts lower and raises the SIP by 10% every year. Change any input in the calculator above to see your own numbers.
| Horizon | Flat SIP | 10% step-up (starting SIP) | Total invested (flat SIP) |
|---|---|---|---|
| 5 years | ₹39,204 | ₹32,686 | ₹23.5 lakh |
| 10 years | ₹14,978 | ₹10,130 | ₹18.0 lakh |
| 15 years | ₹7,432 | ₹4,164 | ₹13.4 lakh |
| 20 years | ₹4,048 | ₹1,918 | ₹9.7 lakh |
| 25 years | ₹2,299 | ₹940 | ₹6.9 lakh |
Target in future rupees, after 12.5% LTCG on gains above ₹1.25 lakh. Returns are an assumption, not a forecast.
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Understand the concept: Managing Volatility With Asset Allocation