Rent vs Buy Calculator
Compare the total cost of renting versus buying a home over time.
📐 Net Buying Cost = Down Payment + (EMI × 12 × Years) − Home Appreciation Gain · Simplified estimate; excludes taxes, maintenance and investment returns on down payment.
The rent vs buy calculator answers one of the biggest financial decisions in an Indian household: should you buy a home now, or rent and invest the down payment? The answer depends on property prices, rental levels, home loan rates, expected appreciation, and your investment discipline. This calculator models both scenarios over 5, 10, 15, and 20 year time horizons and shows which option builds more wealth.
📋 How to Use This Calculator
Enter the property price you are considering, current monthly rent for a comparable home, your available down payment, current home loan rate, expected property appreciation, expected investment return if you rent and invest the down payment, and your income tax bracket. The calculator shows total wealth in each scenario over 5–20 years and the break-even point — the year when buying overtakes renting financially.
💡 Key Facts & Information
Renting scenario: invest down payment (e.g., ₹20 lakh in equity mutual funds at 12% CAGR) + invest monthly savings (difference between rent and EMI). Buying scenario: equity built through EMI principal repayment + property appreciation − total interest cost. Tax considerations: Home loan interest deduction: Section 24(b) up to ₹2 lakh per year. Principal: Section 80C up to ₹1.5 lakh. LTCG on property: 20% with indexation (2-year holding). Stamp duty + registration: 4–8% of property price (sunk cost). Price-to-Rent ratio in major Indian cities: 40–60×. Research shows renting and investing beats buying in 5–7 year periods in overheated markets; buying wins in 10–15 year periods as appreciation compounds.