Rent vs Buy Calculator India
Should you rent or buy a home? Compare total cost of renting vs buying over any time period in India.
Property Details
About this calculator
Rent vs Buy Calculator India compares owning with renting over any horizon you choose, with the stamp duty and registration costs of an Indian purchase built in. It starts from a property price and down payment percentage and ends with the net wealth you would have in each case.
The buying side pays a down payment, 7% for stamp duty and registration, and the EMI each month, and ends with the property's grown value minus the loan outstanding. The renting side pays rent that rises every year and invests the saved down payment and the EMI-minus-rent difference at a 9% assumed return. The summary at the top says which is ahead and by how much, and the table breaks down upfront cost, total paid and final wealth.
How to use it
- Enter the Property Price and Down Payment (%).
- Enter the Home Loan Rate and Loan Tenure in years.
- Enter the Monthly Rent and Annual Rent Increase.
- Enter the expected Annual Property Appreciation and the Analysis Period.
- Press Compare Rent vs Buy and read the verdict and the table.
Tips and common mistakes
- Appreciation is the swing factor. Look at actual price history in your micro-market rather than city-wide headlines.
- Rent growth of 5% a year is typical. Fast-rising rents favour buying.
- The calculator ignores maintenance, property tax and the tax deduction on interest. Adjust your expectations accordingly.
- If you are unsure about staying put for ten years, test five.
Frequently asked questions
Is buying a house always better than renting?
No. Buying wins when appreciation and equity build-up outweigh the higher cash outflow and transaction costs. In many expensive cities, renting and investing is competitive.
What stamp duty does the tool assume?
It includes 7% of the price for stamp duty and registration. Rates vary by state and buyer, so adjust the price or down payment if yours differs.
What return is assumed for the renter's investment?
9% per year, compounded monthly.
Why does the result change so much with appreciation?
Because the property value is large, a one-point change in annual growth changes the final value by lakhs.
Does it include loan tax benefits?
No. Deductions on interest and principal would improve buying.
How long should I stay for buying to make sense?
Transaction costs take years to recover. Seven to ten years is a common rule of thumb.