About the Property vs Stock Return Calculator
What is the Property vs Stock Return Calculator?
Property and equities are the two main ways Indians build wealth. This property vs stock return calculator compares the same lump sum in each over your holding period.
For property, it deducts buying and selling costs, adds net rent (reinvested at the stock return for a fair comparison) and applies price growth. For stocks, it compounds the amount at the market return.
How to use the Property vs Stock Return Calculator
- Amount to Invest (₹) (sample: 50,00,000)
- Holding Period (years) (sample: 15)
- Property Price Growth (% per year) (sample: 6)
- Net Rental Yield (% per year) (sample: 2.5)
- Buying & Selling Costs (% of value) (sample: 9)
- Stock Market Return (% per year) (sample: 12)
- Press Compare Property and Stocks (results also refresh as you type). The result card shows the Better Investment, along with Property value + reinvested rent, Stock portfolio value, Property CAGR (after costs) and Stock CAGR.
Formula used
Property = Net amount × (1 + g)ⁿ × (1 − Selling costs) + Reinvested rent; Stocks = Amount × (1 + r)ⁿ
- g = property price growth
- r = stock market return
- Costs = split half at purchase and half at sale
Taxes, leverage and liquidity differ widely between the two and are not modelled.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Amount to Invest (₹) | 50,00,000 |
| Holding Period (years) | 15 |
| Property Price Growth (% per year) | 6 |
| Net Rental Yield (% per year) | 2.5 |
| Buying & Selling Costs (% of value) | 9 |
| Stock Market Return (% per year) | 12 |
| Result | Value |
|---|---|
| Better Investment | Stocks, by ₹95,46,537 |
| Property value + reinvested rent | ₹1,78,21,292 |
| Stock portfolio value | ₹2,73,67,829 |
| Property CAGR (after costs) | 8.84% |
| Stock CAGR | 12% |
Tips for using the Property vs Stock Return Calculator
- Property is illiquid and lumpy; stocks can be sold in part at any time.
- Buying property with a loan magnifies both gains and losses.
- Nifty 50 returns have averaged roughly 11–13% over long periods, but with sharp swings.