About the Pre-Launch ROI Calculator
What is the Pre-Launch ROI Calculator?
Builders offer pre-launch prices below the launch rate to raise early funds. The discount can look large, but costs and the time until you can sell eat into the return.
Enter the area, the pre-launch rate, the rate you expect at possession, the years until exit and total transaction costs to get the annualised return (CAGR).
How to use the Pre-Launch ROI Calculator
- Area (sq ft) (sample: 1,200)
- Pre-Launch Rate (₹ per sq ft) (sample: 6,500)
- Expected Rate at Possession (₹ per sq ft) (sample: 8,500)
- Years to Possession / Exit (sample: 3)
- Stamp Duty, Registration & Exit Costs (% of price) (sample: 9)
- Press Calculate Pre-Launch Return (results also refresh as you type). The result card shows the Annualised Return (CAGR), along with Price paid, Expected sale value, Profit after costs (before tax) and Risk.
Formula used
CAGR = (Sale value × (1 − Costs ÷ 2) ÷ (Price × (1 + Costs ÷ 2)))^(1 ÷ Years) − 1
- Costs = stamp duty, registration, brokerage and transfer charges, split between entry and exit
This is before tax and ignores delays, which lower the annualised return.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Area (sq ft) | 1,200 |
| Pre-Launch Rate (₹ per sq ft) | 6,500 |
| Expected Rate at Possession (₹ per sq ft) | 8,500 |
| Years to Possession / Exit | 3 |
| Stamp Duty, Registration & Exit Costs (% of price) | 9 |
| Result | Value |
|---|---|
| Annualised Return (CAGR) | 6.12% |
| Price paid | ₹78,00,000 |
| Expected sale value | ₹1,02,00,000 |
| Profit after costs (before tax) | ₹15,90,000 |
| Risk | Pre-launch deals often come before RERA registration – check the project's approvals and the builder's delivery record |
Tips for using the Pre-Launch ROI Calculator
- Pre-launch sales before RERA registration are not permitted; confirm the project is RERA-registered.
- Check the builder's delivery record; a 2-year delay can halve the annualised return.
- Some builders charge a transfer fee to sell before possession.