Home Loan + SWP Stress Test
Rs 80 Lakh Investment with Rs 80 Lakh Home Loan
Stress-test an Rs 80 lakh investment against an Rs 80 lakh home loan at 8% for 20 years, including EMI, return drag and market fall.
Last reviewed: 16 July 2026
Direct answer
What happens when an Rs 80 lakh corpus funds an Rs 80 lakh home-loan EMI?
At 8% for 20 years, the loan EMI is about Rs 66,900 a month. An equal-sized investment corpus can support that withdrawal in favourable scenarios, but the investment is exposed to volatility while the loan payment remains due.
Worked example
With 12% gross return and 0.75% annual drag, the smooth model can end with money remaining. Change the first year to -20% to see why the same headline return assumption can produce a much weaker result.
What to check
- Include a realistic annual drag.
- Do not ignore floating-rate EMI or tenure changes.
- Keep stamp duty, emergency savings and purchase costs outside the corpus.
How the calculator approaches it
- 1.Calculate the reducing-balance home-loan EMI from principal, rate and tenure.
- 2.Treat that EMI as a monthly withdrawal from the investment corpus.
- 3.Apply return drag and compare a steady path with a bad-first-year path.
- 4.Check ending corpus and keep a separate liquid EMI reserve.
Important limitation
Market returns are variable, while the EMI is contractual. A 12% return is an assumption—not a promise—and an early market fall can damage an SWP plan even when the long-run average looks adequate.
Primary sources
Related questions
FAQs
What happens when an Rs 80 lakh corpus funds an Rs 80 lakh home-loan EMI?
At 8% for 20 years, the loan EMI is about Rs 66,900 a month. An equal-sized investment corpus can support that withdrawal in favourable scenarios, but the investment is exposed to volatility while the loan payment remains due.
Which calculator should I use for this question?
Use RupeeKit's Home Loan + SWP Stress Test India and replace the example with your own current figures.
RupeeKit provides educational estimates only. This page is not personalised financial, investment, tax, legal or lending advice. Verify current rules, product documents and your own facts before acting.