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Rent vs Buy Calculator

Compare renting and buying a home over the years.

₹80 Lakh
₹
₹
%
%

Usually 6–9% of the price

%
years
%
%
% of value
%

What the renter earns by investing (e.g. mutual funds)

years
Renting and investing leaves you about ₹1.11 Crore better off after 20 years.
Home loan EMI
₹55,541
vs ₹25,000 rent today
If you buy: net worth
₹2.12 Crore
Home worth ₹2.12 Crore
If you rent: net worth
₹3.24 Crore
Invested savings
Total rent paid
₹99.2 Lakh
Total EMIs paid
₹1.33 Crore
Buying pulls ahead in
Not within this period
YearBuy: net worthRent: net worthAhead
1₹21.27 Lakh₹28.02 LakhRent
2₹26.86 Lakh₹34.94 LakhRent
3₹32.78 Lakh₹42.41 LakhRent
4₹39.05 Lakh₹50.49 LakhRent
5₹45.7 Lakh₹59.21 LakhRent
10₹85.52 Lakh₹1.15 CroreRent
15₹1.39 Crore₹1.98 CroreRent
20₹2.12 Crore₹3.24 CroreRent

How it works: the buyer pays the down payment, stamp duty, EMIs and maintenance and owns the home. The renter invests the same upfront money, plus each month whatever the buyer spends beyond the rent. Tax benefits on home loans and capital gains tax are not included. These are estimates — small changes in growth rates change the answer a lot.

How to use

  1. 1Enter the home price, down payment and stamp duty.
  2. 2Enter the loan rate, tenure and today's rent.
  3. 3Set expected rent increase, home price growth and investment returns.
  4. 4See which leaves you better off and when buying pulls ahead.

Frequently asked questions

How does the comparison work?

The buyer pays the down payment, stamp duty, EMIs and maintenance and owns the home. The renter invests the same upfront money plus whatever the buyer spends above the rent each month.

Is buying always better in the long run?

Not always. It depends on home price growth, rent levels and what you could earn by investing instead. The calculator shows the year buying pulls ahead, if it does.

Are tax benefits included?

No. Home loan tax deductions and capital gains tax are not included, so treat the result as a rough guide.

What growth rates should I use?

Long-term home price growth in many Indian cities has been around 4–7% a year, and diversified equity funds have returned more but with ups and downs. Try a few values.

Does it count non-money factors?

No. Stability, flexibility and the comfort of owning matter too — use the numbers as one input.

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