Buy a home or keep renting: the effect on early retirement
A 30-year-old pays ₹35,000 a month in rent as part of ₹1.2 lakh of household spending. They could buy at 33 with ₹30 lakh down, including stamp duty and registration, and a 20-year loan. The rent stops when they move in.
93%chance the money lasts, retiring at 50 on ₹1.20 L a month
₹6.53 Crneeded at 50, in today's ₹
₹48.0 Lnet worth today
Chance the money lasts to 90 if they retire at 50
| Keep renting | 93% |
| Buy at 33, ₹70,000 EMI | 97% |
| Buy at 36, ₹70,000 EMI | 96% |
The home itself isn't counted as money you can spend in retirement, since you live in it. Buying makes sense for many reasons; this shows only what it does to the date you can stop working. Try your own numbers, including a smaller down payment or a shorter loan.
The assumptions
- Age 30, money has to last until 90.
- Take-home pay ₹2.50 L a month, rising 2% a year above inflation until retirement.
- Household spending ₹1.20 L a month in today's money, 90% of it after retiring.
- SIP ₹80k a month, raised 5% a year.
- Health insurance ₹50k a year, out-of-pocket medical costs from 70, and a 3% yearly chance of a ₹10.0 L bill insurance won't cover.
- Equity returns 11% a year on median with 22% volatility, inflation 6%, 90% confidence, New Regime tax.
All numbers come from the same engine as the calculator, run over 1,000 market histories. See how it works for the defaults and their sources.
This is an illustration, not advice. Your own numbers will give a different answer.