Rent vs Buy Calculator
Enter the home price, rent, and your assumptions to see whether buying or renting leaves you richer after your planned stay.
Runs entirely in your browser — your numbers never leave this page.
How it works
Rent vs buy is really a net-cost comparison over the years you'll actually stay:
Buy cost = Down payment + EMIs + Maintenance − (Home value − Loan balance)
Rent cost = Total rent paid − Growth of the invested down payment
- Stay duration decides it. Under ~5 years, renting usually wins — stamp duty (5–7%) and registration alone take years to amortize. Over 10+ years, buying usually pulls ahead.
- The invested down payment is the renter's secret weapon: Rs 16 lakh invested at 10% for 10 years becomes ~Rs 41.5 lakh, offsetting a lot of rent.
- Rent growth matters: at 8% yearly growth, today's Rs 25,000 rent is ~Rs 54,000 in year 10. High rent inflation favors buying.
- Appreciation is the buyer's engine: 5% yearly growth doubles the home's value in ~14 years — but it's unrealized until you sell.
- This model ignores tax benefits (which favor buying in the old regime) and the peace of mind of owning — not everything is in the spreadsheet.
Frequently asked questions
Is it better to rent or buy in India?
It depends mostly on how long you stay. Under ~5 years, renting usually wins because stamp duty (5–7%) and transaction costs take years to recover. Over 10+ years, buying usually wins as EMIs stay flat while rents compound upward.
How does this calculator compare the two?
Buying cost = down payment + EMIs + maintenance − equity built (home value minus loan balance). Renting cost = total rent paid − growth of the down payment had you invested it. Lower net cost wins.
Why does the renter get to "invest the down payment"?
Because it is a fair comparison: the buyer locks that money into the house, so the renter should get credit for what it would earn invested. Ignoring this makes buying look artificially better.
What rent increase should I assume?
Indian metro rents typically rise 7–10% yearly. At 8%, a Rs 25,000 rent becomes ~Rs 54,000 in 10 years — this compounding is why long stays favor buying.
Does home loan tax benefit change the answer?
It can tip close calls toward buying: up to Rs 2 lakh/year interest deduction (24b) plus principal under 80C in the old regime. This calculator excludes it — treat close results as slightly pro-buying.
What about stamp duty and registration?
A real buyer pays 5–11% extra upfront (state-dependent). This calculator excludes it for simplicity, which means short-stay results are slightly optimistic for buying — another reason renting wins under 5 years.
Is 5% property appreciation realistic?
For Indian metros over long periods, 4–7% is a reasonable planning assumption — roughly inflation plus a bit. Prime areas have done better; stagnant markets worse. Be conservative.
What if I prepay the home loan?
Prepayments shorten the loan and slash interest, which improves the buying case — especially early prepayments. The calculator assumes no prepayment.
Does buying build wealth faster?
It forces disciplined saving (EMIs), which helps people who would otherwise spend the difference. But a disciplined renter who actually invests the difference often does as well or better.
What non-financial factors matter?
Job mobility (renting wins), school stability and control over the space (buying wins), and stress — a stretched EMI on a single income is a risk no spreadsheet captures.