Rent vs Buy Calculator
Compare the true cost of renting vs buying a home in India. Accounts for EMI, rent, opportunity cost of down payment, property appreciation, and tax benefits.
Rent vs Buy Calculator
True cost comparison over your planned stay period
If you rented and invested the down payment + EMI-rent difference
Simplified model. Does not account for maintenance, property tax, stamp duty, or tax benefits. Use as directional guidance only.
In Indian metros, buying is rarely cheaper than renting in the first 7–10 years. A Rs 1.5 crore flat in Bengaluru with Rs 30 lakh down payment costs Rs 1.15 lakh/month in EMI vs Rs 35,000/month in rent for an equivalent flat. The Rs 80,000 monthly difference, invested in index funds at 12%, grows to Rs 1.3 crore in 10 years — often more than the property appreciation. Run the numbers before you decide.
Rent vs Buy in India — The True Cost Comparison
The rent vs buy decision is not just about EMI vs rent. It involves opportunity cost of the down payment, property appreciation, rent escalation, equity building through principal repayment, and investment returns on the capital saved by renting. This calculator models all these factors over your actual planning horizon.
When does buying beat renting?
Buying typically beats renting when you stay 10+ years (time for equity and appreciation to compound), the area has strong rental yields above 3%, property appreciation exceeds alternative investment returns, and your effective EMI after tax benefits is close to the market rent. In India's top metros, this threshold is usually 8–12 years.