Property Investment

Rent vs Buy Calculator

Compare the true long-term cost of renting versus owning, accounting for what your money could earn if invested instead.

Stamp duty + registration + legal + brokerage combined — use the Purchase Cost Calculator for an exact figure.

Expected return if the renter invests the down payment and any monthly savings elsewhere, e.g. index funds.

Verdict
Net Cost of Buying₹0
Net Cost of Renting₹0
This is a simplified financial model, not personalised financial advice. It assumes the renter consistently invests the difference at the rate you specify, and that property appreciation and rent increases follow the rates you enter — real markets fluctuate. Use it to understand the trade-offs, not as a final decision-making tool. This is not investment or financial advice; consider consulting a financial advisor for your specific situation.

How this calculator works

What it calculates

It compares two paths over your holding period: buying (down payment + EMI + maintenance, offset by the equity you build as the home appreciates) versus renting (rent paid, offset by what your down payment and monthly savings could earn if invested instead).

Why does the investment return assumption matter so much?

It's the single biggest lever in this model. A higher assumed return on invested savings makes renting look relatively better; a lower one favours buying. Indian rental yields tend to be low (2-4%), which is part of why renting-and-investing often compares favourably in a purely financial sense — but this ignores non-financial factors like stability and lifestyle.

What this calculator doesn't capture

Emotional value of ownership, stability for family/schooling, tax benefits on home loan interest and principal (Section 24 and 80C), rent control dynamics, and the fact that few people invest disciplined monthly savings as consistently as this model assumes.