Save ₹25.00 L for a home down payment by age 35
Start at age 27 and you have 8 years. At a projected 12% annual return, a flat SIP of about ₹15,478 a month reaches the target. The calculator below lets you replace that assumption with your own.
₹15,478
₹25.00 L
₹14.86 L
₹10.14 L
₹15.69 L
Your ₹25.00 L is reduced to ₹15.69 L in today's purchasing power at 6% inflation. That's 37% less than the headline number.
How this result is calculated
Formula: Each monthly contribution earns the selected annual return divided by 12. Contributions are added at the start of each month; an enabled step-up raises them once a year. Goal mode reverses the same calculation to estimate the starting monthly SIP.
Active assumptions: 12% annual return, 6% annual inflation, with no annual step-up. Returns and inflation are constant estimates, not forecasts or guaranteed outcomes.
Tax treatment (2026–27): When enabled, the estimate treats all gains as long-term gains from an equity-oriented fund, applies one ₹1.25 L exemption, then 12.5% tax and 4% cess. It does not model holding periods, other capital gains or losses, surcharge, STT, or fund-specific tax treatment.
Educational estimate only, not investment or tax advice. Rules and your circumstances may differ. Last verified 2 July 2026.
Income Tax Department: Income-tax Act, 2025Union Budget: capital-gains changesRBI: inflation target framework
Investment Growth Over Time
Chart from year 1 to year 8. Total Value changes from ₹2.0L to ₹25.0L. Invested changes from ₹1.9L to ₹14.9L. After Inflation changes from ₹1.9L to ₹15.7L.
| Target | Monthly SIP | Your contributions | Projected growth |
|---|---|---|---|
| ₹25.00 L | ₹15,478 | ₹14.86 L | ₹10.14 L |
What the monthly target assumes
The calculation treats ₹15,478 as a flat monthly SIP paid for 96 months. At 12%, those payments grow to at least ₹25.00 L. You put in about ₹14.86 L; projected market growth accounts for roughly ₹10.14 L. Returns will not arrive in a straight line, and a lower return means a shortfall unless you raise the contribution.
How this goal changes the plan
For this home down payment, A down payment is only one part of buying a home; keep stamp duty, registration, furnishing, and an emergency buffer outside this target.
Check the target amount once a year. If the expected cost rises, update it first and let the monthly SIP follow. A salary increase can fund a step-up, but do not count that future increase in today's base plan unless you can maintain it.
Age matters because time does the heavy lifting
Starting at 27 gives this plan 8 years to compound before age 35. Cutting the horizon forces each monthly payment to carry more of the target. Extending it does the opposite. Use the time-period control above to compare the monthly amount at one year earlier and one year later before settling on a contribution.
Tax and return assumptions
The 12% return is an illustration, not a promised mutual-fund return. The target is shown before exit tax. Equity gains may attract long-term capital-gains tax when units are sold, so leave room above the target or model tax in the full SIP calculator. LTCG assumptions effective 2024-07-23; source: Income Tax Department.
Frequently Asked Questions
How much should I invest each month for a ₹25.00 L home down payment?
How much of the ₹25.00 L target comes from my contributions?
What if I start this goal later?
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Written by Amir Khan, a contributor to RupeeReality: free financial calculators for Indian investors. All calculations use standard financial formulas cross-referenced against established platforms. Numbers updated for FY 2026-27. Not financial advice.