Rent vs Buy Calculator India
Compare your net worth from buying a home versus renting and investing the surplus. Go beyond EMI vs rent — see the full financial picture.
Property Purchase Details
Renting Details
Enter the rent you would expect to pay for this same property, or a similar property in the same location. Do not enter your current rent if it is for a different property, size or location.
Excluded from initial investment, added back at end of comparison period.
Investment Alternative
Used to grow both the initial lump sum and monthly surplus. Use post-tax figure.
If you enter this, the initial investment under renting = Available cash − Security deposit. Otherwise, it defaults to Down payment + Registration + Interiors − Security deposit.
Comparison Period
Enter Details to Compare
Fill in property, rent and investment details, then click Compare Rent vs Buy.
Rent vs Buy: The Complete Guide for India
Rent vs Buy: what should you compare?
Many people compare EMI with rent — and conclude that buying is better if EMI is close to rent. This is incomplete. Buying also involves a large down payment, registration costs, stamp duty, interior costs, ongoing maintenance and property tax. These are all cash outflows. Renting instead keeps that capital free to invest. A proper comparison asks: what is your net worth after N years, in each scenario?
Why EMI vs rent is not enough
If you're buying a ₹80 lakh property with ₹20 lakh down and ₹60 lakh loan at 8.5%, your EMI is around ₹52,000 — plus maintenance and property tax, your monthly buying outflow is around ₹56,000. If you can rent a similar property for ₹20,000 (3% yield), the ₹36,000 monthly surplus — plus the ₹30 lakh upfront costs you didn't lock up — can be invested. Over 10–20 years, this compounded wealth can rival the property's value.
Role of property appreciation
Property appreciation is the biggest driver of whether buying wins. In fast-growing cities (8–10% p.a.), buying often looks better over 10+ years. In stagnant or slow-growth markets (3–5% p.a.), renting and investing can create comparable or more wealth. The problem is that property appreciation is hard to predict and varies widely by location, micromarket, and developer quality.
Role of investment return
When renting, you invest both the upfront surplus and the monthly cashflow difference. If your post-tax investment return meaningfully exceeds property appreciation, renting builds more wealth over time. Indian equity markets have historically delivered 12–15% CAGR pre-tax over 10+ year periods, though this is not guaranteed. FDs and debt funds offer 6–8% post-tax.
When buying makes sense
Buying is usually a better choice when: (1) You plan to stay in the same city for 7–10+ years. (2) Property in your target area appreciates meaningfully. (3) EMI is within a comfortable 35–40% of your income. (4) You value stability, avoiding annual rent hikes, and want to customise your home. (5) You have a stable, growing income and adequate emergency savings. (6) You can benefit from home loan tax deductions.
When renting makes sense
Renting may be the better financial decision when: (1) You're unsure of your city or location for the next 5 years. (2) Property prices are very high relative to rent (low rental yield market). (3) Your EMI would be above 45–50% of income, straining your finances. (4) You can invest the surplus consistently at higher returns than property appreciation. (5) You prefer liquidity, career flexibility, or expect to move for work.
Disclaimer
This calculator provides indicative estimates only. Actual results may vary based on property appreciation, interest rates, rent escalation, tax treatment, maintenance, transaction costs and investment returns. Home loan tax benefits under Section 24(b) and Section 80C are not modelled. Emotional, lifestyle and non-financial factors are not captured by any calculator. This is not financial, investment, or tax advice. Consult a qualified financial advisor before making home purchase or renting decisions.