Under-Construction Property Calculator India — True Cost & Pre-EMI 2026

Last updated: 29 April 2026 Reviewed by Arjun Mehta, CA

**Under-construction properties** require payment in stages (10–20% on booking, then construction-linked milestones). During construction, you pay 'pre-EMI' — interest only on the amount disbursed, not full EMI. However, this pre-EMI is not deductible as interest on home loan until possession. GST at 5% (or 1% for affordable housing) also applies on under-construction properties.

Property Agreement Value (₹)

Home Loan Amount (₹)

Interest Rate (% p.a.)

Construction Period (Years)

Loan Tenure After Possession (Years)

Regular EMI (Post-Possession) —

Total Pre-EMI During Construction —

GST on Property (5%) —

Total Cost of Property —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹75 lakh under-construction flat with ₹60 lakh loan

GST (5%): ₹3,75,000. Pre-EMI for 2 years on average disbursement of ₹30 lakh: ₹2,13,333/year, total ₹4,26,667. Regular post-possession EMI: ₹52,120/month for 20 years. Total cost: ₹75L + GST ₹3.75L + pre-EMI ₹4.27L = ₹83.02 lakh initial, plus ₹1.25 crore over 20 years in EMIs.

Ready-to-move vs under-construction

Ready-to-move: no GST, no pre-EMI loss, immediate possession. Typically 10–15% higher price than under-construction for same location. Under-construction: lower price, risk of delays, pre-EMI cost (money down the drain). For a 2-year project: pre-EMI loss often equals the price advantage.

Frequently Asked Questions

What is pre-EMI on under-construction property?

During construction, the bank releases loan in stages (as construction progresses). Pre-EMI = interest on the disbursed amount. You don't pay full EMI until possession. Pre-EMI is not principal repayment — your loan balance doesn't reduce during this period.

Is GST applicable on under-construction property?

Yes. Under-construction residential property attracts 5% GST (without input tax credit). Affordable housing (value below ₹45 lakh, carpet area below 60 sqm): 1% GST. Completed/ready-to-move property registered before the builder gets occupancy certificate: no GST.

What are the risks of buying under-construction property?

Risks: construction delays (common — factor in 1–2 year buffer), builder default or insolvency, quality issues, changes in local regulations affecting FSI, and market price decline during construction. RERA registration of the project is mandatory from 2017 — always verify at RERA portal before booking.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. Calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.