Free buyer calculator
Rent vs Buy Calculator
Buying a flat makes sense when, after accounting for the EMI, stamp duty and maintenance, you end up wealthier than if you had rented and invested the difference. Enter the price, rent and your assumptions to see which comes out ahead and in which year buying overtakes renting.
Within 15 years, renting and investing the difference stays ahead.
- Home loan EMI
- ₹51,558
Net worth year by year
| Year | If you buy | If you rent | Ahead |
|---|---|---|---|
| 1 | ₹21.44 L | ₹27.07 L | Renting |
| 2 | ₹27.18 L | ₹32.83 L | Renting |
| 3 | ₹33.26 L | ₹38.92 L | Renting |
| 4 | ₹39.69 L | ₹45.35 L | Renting |
| 5 | ₹46.49 L | ₹52.14 L | Renting |
| 6 | ₹53.68 L | ₹59.31 L | Renting |
| 7 | ₹61.29 L | ₹66.89 L | Renting |
| 8 | ₹69.34 L | ₹74.89 L | Renting |
| 9 | ₹77.86 L | ₹83.34 L | Renting |
| 10 | ₹86.88 L | ₹92.27 L | Renting |
| 11 | ₹96.42 L | ₹1.02 Cr | Renting |
| 12 | ₹1.07 Cr | ₹1.12 Cr | Renting |
| 13 | ₹1.17 Cr | ₹1.22 Cr | Renting |
| 14 | ₹1.29 Cr | ₹1.33 Cr | Renting |
| 15 | ₹1.41 Cr | ₹1.45 Cr | Renting |
How this rent vs buy comparison works
The calculator follows two versions of you with the same money.
- Buyer: pays the down payment and purchase costs, then the EMI plus maintenance every month. Their wealth is the home’s value minus the loan still outstanding.
- Renter: invests the down payment and purchase costs instead, pays rent, and each month invests whatever the buyer is paying above the rent. Their wealth is that investment pot.
If rent ever costs more than owning, the buyer invests the difference instead. The comparison ignores income tax benefits, the cost of selling the flat and furnishing, so treat it as a guide to the trade-off rather than a forecast.
What decides the answer
Three assumptions matter most, and you should try several values:
- Price growth vs investment return. If property prices grow more slowly than your investments, renting tends to win, and the reverse is also true. Nobody knows future growth; test a pessimistic and an optimistic case.
- Rent vs price. In many Indian metros, annual rent is only about 2%–4% of the flat’s price (the rental yield), which is well below a home loan rate. That makes renting cheaper month to month, and buying has to make up for it through price growth.
- How long you stay. Stamp duty and registration are paid once, up front. The longer you stay, the more time buying has to recover them.
Beyond the numbers
Owning gives security of tenure, freedom to modify the home and protection from rent increases; renting gives flexibility to move for work and keeps your money liquid. Read our full guide on rent vs buy in India and rental yield vs capital appreciation.
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Rent vs buy — FAQs
It depends on how long you will stay, the rent-to-price ratio in your city and how you expect property prices and investments to grow. Buying usually pays off only if you stay for many years. The calculator shows the break-even year for your own numbers.
It is the first year in which the buyer’s net worth (home value minus outstanding loan) is higher than the renter’s investments. Before that, renting and investing the difference leaves you better off.
Annual rent in big Indian cities is often only 2% to 4% of the property price, while home loan rates are much higher, so monthly ownership costs exceed rent. Buying catches up through price growth and loan repayment.
No. Tax deductions depend on your tax regime and income. Under the old regime they make buying somewhat cheaper; under the new regime there is no deduction for a self-occupied home.
There is no reliable number; it varies by city, locality and period. Try a low and a high value to see how sensitive the answer is.
Results are estimates for planning only and are not a loan offer or tax advice. Rates, charges and lender rules change; confirm them with your bank, the sub-registrar and the developer before you commit.