Rent vs Buy Calculator
Should you rent or buy? Compare the 10-year financial impact of buying a home (including EMI, taxes, maintenance) vs renting + investing the difference. Accounts for appreciation and opportunity cost.
Methodology. Buy scenario: cumulative EMI paid + stamp duty (6%) + registration (1%) + maintenance (1% of home value annually) + property tax (0.2%) – remaining home equity at end of horizon (which is: home value at appreciation – remaining loan balance). Rent scenario: cumulative rent paid + opportunity cost (down payment and EMI-surplus invested at alternative return). Doesn’t include tax benefits (80C principal / 24b interest deduction up to ₹2L). For long horizons (15+ years) and steady appreciation, buying typically wins. For short horizons or expensive real estate (Mumbai/Bangalore), renting often wins.
What the calculator compares
Buying: down payment, stamp duty and registration, EMIs, maintenance and property tax, offset by the home’s expected appreciation. Renting: rent rising each year, while the down payment and the monthly difference between EMI and rent are invested. After the chosen period it compares your net worth on each path.
Worked example in one line
A ₹1 crore flat that rents for ₹25,000 a month has a rental yield of just 3% a year, while a home loan costs around 8.5%. On those numbers renting and investing the difference usually wins over 10 years unless the property appreciates faster than about 7–8% a year or you stay much longer.
Inputs that swing the answer
- Price-to-rent ratio: above 25–30 (yields below 4%) generally favours renting.
- How long you will stay: transaction costs of 7–10% need 7–10 years to recover.
- Return on invested savings: the renting case only works if you actually invest the difference.
The money is only part of the decision; stability and control matter too. Read our rent vs buy guide for city break-even timelines, and check rental yields in Indian cities.
FAQs
Does it include tax benefits?
Home loan interest deduction (up to ₹2 lakh for a self-occupied home) applies only in the old regime, so it often matters less than people expect.
What appreciation should I assume?
Long-run residential prices in most Indian cities have grown at roughly 4–7% a year; test a range.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.