Buy vs Rent Calculator
FreeCompare buying and renting costs to make an informed property decision
Property Details
₹
₹
Current market rent for equivalent property
Growth Assumptions
5.0%
0.0%15.0%
6.0%
0.0%15.0%
8.0%
4.0%12.0%
Loan Assumptions
Down Payment20%
Tenure20 years
Rate8.5%
Verdict
Buying is more economical
Net Cost of Buying
-₹7.94 L
after property gains
Total Cost of Renting
₹59.52 L
over 20 years
Break-even at year 1 — buying becomes cheaper after that
Cost Components Over 20 Years
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Frequently Asked Questions
How do I decide whether to buy or rent a house in India?
Compare the total cost of buying (EMI + maintenance + property tax + opportunity cost of down payment) against the total cost of renting (rent + annual rent increase + investment returns on saved capital). If buying costs less over your intended stay period and the property appreciates well, buying is better. This calculator does this comparison automatically.
What is the price-to-rent ratio and what does it indicate?
The price-to-rent ratio is the property price divided by the annual rent. A ratio below 15 generally favours buying, 15-20 is neutral, and above 20 favours renting. In most Indian metro cities, this ratio ranges from 25-35, which means renting is often financially cheaper in the short term.
How long should I plan to stay to make buying worthwhile?
Generally, buying becomes financially better than renting if you plan to stay for 7-10+ years, assuming 5-7% annual property appreciation and current interest rates. The exact breakeven point depends on your city, property type, and rent growth rates.
Does the calculator consider tax benefits of a home loan?
The calculator factors in the core financial comparison. Home loan borrowers in India can claim tax deductions under Section 80C (up to ₹1.5 lakh on principal) and Section 24(b) (up to ₹2 lakh on interest for self-occupied property), which can further tilt the decision in favour of buying.