Rent vs buy calculator

Two households start with the same money. One buys with a loan; the other rents and invests what the buyer spends up front and each month. This compares what each has after the years you choose, on your assumptions.

Two households, same money

Home price₹Down payment%Loan rate%Loan tenureyearsStamp duty, registration, other buying costs%Maintenance and repairs a year% of valueAssumed home price growth a year%Cost of selling%Rent for a similar home, a month₹Rent rise a year%Assumed return on the renter's investments%Compare afteryears

After 15 years: buying leaves ₹1.36 crore, renting and investing leaves ₹1.58 crore (₹22.28 lakh more from renting).

Every growth rate here is your assumption; small changes to them can flip the result. Tax, home-loan tax deductions and the value of living in your own home are left out.

₹55,541

EMI on the loan

₹33,874

buyer's first-month outgoings (EMI + upkeep) minus the rent; the renter invests this

3.8%

rent for a year as a share of the price (rental yield)

How sensitive it is: with home prices growing 3% a year instead, the gap would be ₹61.24 lakh in favour of renting; at 7%, ₹28.83 lakh in favour of buying.

How it is worked out

Buying: the down payment and purchase costs (stamp duty, registration, brokerage) are paid at the start, then the EMI and maintenance every month. Wealth is the home's value minus the loan still owed and the cost of selling.

Renting: the renter invests what the buyer paid at the start, and each month invests the difference between the buyer's outgoings and the rent, or draws on the investments when rent is higher. Wealth is the value of those investments.

The result depends heavily on two assumptions, home price growth and the return on investments; the sensitivity line shows how much. Tax, home-loan tax deductions, and non-financial reasons to own or rent are left out.

Questions

Is it better to rent or buy a house in India?

It depends on the price compared with the rent, the loan rate, how long you stay, and what home prices and investments do, none of which is known in advance. The calculator shows how the answer moves with each assumption.

What is rental yield?

A year's rent as a share of the home's price. Indian residential rental yields have often been 2% to 4%, below home-loan rates, which is why the comparison depends so much on price growth.

What costs does buying add beyond the EMI?

Stamp duty and registration (often 5% to 8% of the price, varying by state), brokerage, maintenance, property tax, and the cost of selling.

Educational calculator only, not financial, tax or investment advice. Results follow the formulas and the assumptions you enter; actual amounts depend on your lender, bank, employer and the rules that apply to you. Past performance does not indicate future results. Read the Disclaimer.