Rent vs buy
Compare renting against buying the same home: loan, appreciation, and rent hikes included.
Runs locally; no financial inputs are uploaded
Buying wins by ₹3.65 L
Renting costs ₹3.95 L total · buying costs ₹30.5k net (EMI ₹71,978/mo, equity left ₹1.06 Cr)
— total rent paid · — net buying cost (EMIs + down payment − equity).
Educational model, not financial advice. Ignores maintenance, property tax, stamp duty, brokerage, and the returns you could earn investing the down payment instead. Add ~1%/yr maintenance mentally against buying, and be honest about how long you will actually stay.
About this calculator
How the rent vs buy verdict is calculated
Buying cost is the down payment plus every EMI you pay, minus the equity you still hold at the end. Equity is the home value at that point minus the outstanding loan. Renting cost is every month of rent, hiked once a year. Whichever number is lower wins.
The defaults are Indian: rupee amounts, a 9% home loan calculated on monthly rests, 6% annual rent escalation and 5% annual appreciation. Change them to match your city and your actual loan offer. The verdict moves a lot with small changes, which is why running the numbers beats arguing about them.
Stamp duty and registration are not in the model, and in most Indian cities they are the largest upfront cost after the down payment. Maintenance, property tax and brokerage are missing too, as is the return you could earn by investing the down payment elsewhere. Every one of those pushes the answer toward renting, so a narrow win for buying is really a tie.
Frequently asked questions
Is renting or buying better in India?
There is no universal answer. It depends on the price-to-rent ratio, how long you stay, your loan rate and how fast rents rise. This calculator models those inputs and shows the cheaper net cost over your horizon.
What does this rent vs buy calculator include?
Buying: the down payment, every EMI, and the equity you hold at the end. Renting: every month of rent, with annual escalation. The verdict is the lower net cost over the horizon you choose.
What costs are left out?
Stamp duty and registration, maintenance, property tax, brokerage, and the return you could earn investing the down payment instead. All of them push the answer toward renting, so a narrow win for buying is really a tie.
What loan rate should I use?
Your actual sanctioned rate, not the advertised one. A 0.5% difference in rate moves the EMI materially over a 20-year tenure.
How long do I need to stay for buying to win?
Move the Stay slider. Buying front-loads cost, so short horizons usually favour renting and long horizons usually favour buying. Find the year where the lines cross, then judge whether you will really stay that long.