Run a conservative scenario before relying on the headline result.
Rent vs Buy Calculator
Compare the long-term financial paths of renting and buying. Adjust the assumptions, inspect the chart and read the complete guide below.
02 Your projection
Estimated buying outflow₹1.87 CrUpdates instantly as you edit
Total invested / base₹84.00 L
Growth / cost₹78.71 L
Projected property value₹2.65 Cr
Projection journeyHover to inspect a year
Maintenance, taxes, rent escalation and investment opportunity cost should also be considered.
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Five smart nudges
Use the result with context.
Review the assumptions after any major change in income, rates or goals.
Keep emergency money separate from long-term investments.
Account for taxes, charges and inflation when comparing options.
Use this estimate to ask better questions, not as a return promise.
Understanding Rent vs Buy in India
Editorially reviewed 12 July 2026 · Rules and assumptions can change
EMI versus rent is the wrong comparison
Buying uses down payment, stamp duty, registration, loan interest, maintenance, property tax, insurance, repairs and eventual selling costs. Renting uses deposit opportunity cost, rent escalation, moving costs and fewer ownership obligations. Compare both complete cash-flow paths over the same period.
Part of EMI repays principal and builds equity; interest is a cost. Rent is a cost, but the renter can invest the down payment and monthly cash-flow difference. Omitting that investment biases the result toward buying.
Worked housing assumptions
For a ₹1 crore home with ₹20 lakh down, the loan is not the only upfront requirement; 7% transaction costs add ₹7 lakh. At 8.5% for 20 years, loan interest is substantial. Compare a ₹35,000 starting rent that rises annually and invest the renter’s ₹27 lakh avoided upfront cash under a conservative after-tax return.
Property appreciation is not rent saved. Use net sale value after brokerage, taxes and remaining loan. Test 3%, 5% and 7% appreciation rather than treating one citywide average as certain.
Time horizon and break-even
High transaction costs make short ownership periods difficult. A family likely to move in three years may value rental flexibility even if a 20-year model favours buying. Conversely, stable long-term use and freedom from rental uncertainty have non-financial value.
The break-even year changes with rent escalation, maintenance, loan reset, investment return and sale cost. A single output should be accompanied by sensitivity ranges.
Risk and lifestyle factors
Buying concentrates wealth in one illiquid location and adds job-mobility and title risk. Renting creates renewal and relocation risk. Schooling, commute, ability to modify the home and family stability deserve explicit weight outside the spreadsheet.
Do not use every liquid asset for down payment or count optimistic appreciation as retirement saving. Obtain independent legal due diligence before purchase.
Rent-versus-buy checklist
Use actual comparable rent and all purchase costs, maintenance, tax, rent escalation, investment return, appreciation and planned holding period. Model outstanding loan and net sale value at exit.
Stress rates and relocation, keep emergency liquidity and record non-financial priorities. The calculation supports a decision; it cannot value certainty or belonging for the household.
Official sources used for this guide
Rates, thresholds and rules can change after the review date. Check the linked authority and the provider’s current documents before acting.
Rent vs Buy calculator FAQs
Why is EMI not directly comparable with rent?
EMI contains principal and interest, while buying also has upfront and ongoing costs; the renter can invest cash differences.
Should the down payment be treated as free?
No. It has an opportunity cost because it could otherwise remain invested.
How is property sale value measured?
Use projected market value less selling costs, taxes and outstanding loan.
Does buying always win over long periods?
No. The result depends on appreciation, rent, financing, maintenance, investment return and holding period.
What cannot the calculator measure?
Mobility, neighbourhood preference, tenure security and emotional value require separate judgement.