Property Appreciation Calculator

Prime metro locations (South Mumbai, South Delhi, prime Bengaluru, Hyderabad) have delivered 8–12% CAGR over 10–15 years. The India average is 5–7% CAGR. Tier-2 cities like Pune, Ahmedabad, and Kochi have seen 8–10% CAGR recently. Always compare real (inflation-adjusted) returns — a nominal 7% gain with 5.5% inflation is just 1.4% real return.

CAGR (Compound Annual Growth Rate) is the steady annual rate at which your property value grew. Formula: CAGR = (Current Value / Purchase Price)^(1/years) − 1. Example: bought at ₹40L in 2015, now ₹85L in 2025 → CAGR = (85/40)^(1/10) − 1 = 7.8% pa. CAGR is the most accurate single-number measure of past performance.

Real Return = (1 + Nominal CAGR) / (1 + Inflation Rate) − 1. If property grew at 8% and inflation was 5.5%, real return = (1.08 / 1.055) − 1 = 2.37% pa. This shows how much wealth actually increased in purchasing-power terms. Many investors overlook inflation and overestimate actual gains.

The calculator compares your property returns against a hypothetical alternative investment (default 12% pa — roughly equity mutual fund long-term average). If you had invested the same amount in equities, would you be ahead or behind? This comparison helps assess opportunity cost of capital locked in property.

Gross rental yield = (Annual Rent / Property Value) × 100. Indian metro properties typically yield 2–3.5% gross. Net yield after vacancy, maintenance, and tax is often 1.5–2.5%. Total property return = capital appreciation + rental yield. Self-occupied properties earn zero yield — their total return is appreciation only.

Leverage amplifies returns on equity invested. Example: bought ₹80L property with ₹20L own equity + ₹60L loan. Property grew to ₹1.2Cr — gain of ₹40L entirely on ₹20L equity = 200% ROE! This is the CAGR on own equity. However, loan interest cost reduces net gain — this calculator shows gross ROE before interest.

Future Value = Current Value × (1 + Appreciation Rate)^Years. Example: ₹85L property at 8% pa for 10 years → ₹85L × (1.08)^10 = ₹1.83 Cr. The 4-year projection table (5, 10, 15, 20 years) helps you see how compounding accelerates value over time.

The calculator uses current market value as the base for future projections — not purchase price. This is correct because the current value already reflects past appreciation. Future returns compound on today's value. Using purchase price for future projections would double-count historical gains.

Yes. The formulas (CAGR, future value, rental yield) apply equally to commercial property. Commercial properties in India typically yield 6–9% rental yield (vs 2–3% for residential) but can have different appreciation patterns. Enter your commercial property's values — the math works the same way.

If "Alt Investment ahead", it means that if you had invested the same amount in equities (at the alt return rate you set), you would have more wealth today or in future. This does NOT mean property was a bad investment — property provides stability, leverage, lifestyle value, and forced savings. The comparison is purely financial.