Can I afford a ₹30.0 L house on ₹3.0 L a month?
Yes, but it is tight.
- Buffer drops to 1.3 months, under the three-month floor.
The numbers
| Down payment20% upfront | ₹6.0 L |
| Monthly EMI7% of take-home · 20 years at 9% | ₹20,828 |
| Interest to the bankOver the full tenure | ₹26.0 L |
| Running costsUpkeep, insurance, dues | ₹2,500/mo |
| Emergency buffer afterDown from 6.0 mo | 1.3 mo |
| Cost by age 60Net worth you give up | ₹4.18 Cr |
At ₹3.0 L a month you would end up with ₹86.42 Cr by 60 with this house, against ₹90.59 Cr without it.
What this breaks
- Three to six months of buffer
Buffer drops to 1.3 months, under the three-month floor.
Bogleheads and Dave Ramsey's Baby Steps 1 and 3
Your numbers are not these numbers
This page assumes a great deal about your expenses, savings and existing loans. Enter your own and get the answer for your actual situation.
Run your own numbersWhat this page assumed
You told us one number. Everything else had to be assumed, so here is exactly what was taken for granted:
- Monthly expenses set to 45% of take-home
- Six months of expenses held as an emergency buffer
- One year of take-home already invested
- No existing loan EMIs, and age 32
The same house on a different salary
₹30,000/mo₹40,000/mo₹50,000/mo₹60,000/mo₹75,000/mo₹90,000/mo₹1.0 L/mo₹1.2 L/mo₹1.5 L/mo₹2.0 L/mo₹2.5 L/mo₹4.0 L/mo₹5.0 L/mo₹6.0 L/mo₹8.0 L/mo