Rent vs Buy
Rent vs buy calculator India
Compare buying a home with renting and investing the difference. Built for salaried professionals deciding whether a house EMI fits their long-term wealth plan.
Calculator
Should you buy a house or keep renting?
Formula
How the rent vs buy estimate works
The calculator simulates two lives with the same starting cash. In the buying path, it tracks down payment, registration cost, EMI, maintenance, loan balance, tax benefits, and future property value. In the renting path, it invests the down payment, registration cost, and any EMI-rent difference.
Buying wealth = Future home value - loan balance. Renting wealth = invested upfront cash + invested monthly difference.
FAQ
Is buying always better than renting in India?
No. Buying can be better when you stay long enough, property appreciation is reasonable, and EMI does not stress your salary. Renting can be better when rental yield is low and your down payment can compound elsewhere.
What is the most important input in rent vs buy?
The biggest drivers are property price, rent for a comparable home, loan interest rate, down payment, and expected investment return. Small changes in these inputs can change the result over 15-25 years.
Should I include stamp duty and registration?
Yes. These are upfront cash costs and are usually not part of the loan. Ignoring them makes buying look cheaper than it really is.
How are home loan tax benefits included?
The calculator uses a simplified old-regime estimate for Section 24(b) interest and Section 80C principal limits. Actual benefit depends on your tax regime, total deductions, property usage, and current tax law.
What investment return should I assume if I rent?
Use a conservative post-tax return you can actually stick with. FD returns, debt funds, index funds, and equity funds have different risk and tax treatment.
Does the calculator include maintenance?
Yes, it includes owner maintenance as a monthly cost and grows it over time. Society charges, repairs, property tax, insurance, and interiors should be estimated honestly.
What if my rent is much lower than EMI?
Then renting and investing the difference can become powerful. This is common in expensive metro areas where property prices are high compared with rent.
What if I plan to live in the house forever?
The emotional value of stability, school location, and family preference matters. This calculator shows financial trade-offs, not whether ownership is personally right for you.
Can this calculator predict property prices?
No. It uses your appreciation assumption. Real estate returns vary by city, project quality, locality, liquidity, and maintenance quality.
Should salaried people use this before booking a flat?
Yes. It helps you see whether the EMI is a wealth-building decision or just a salary pressure decision. Run it before paying token money or stretching your down payment.