Rent vs Buy Calculator
Compare the financial outcome of renting vs buying a home over any time horizon.
Advertisement
Advertisement
Property Details
Rent & Returns
Better Option (over 10 years)
Rent
Net wealth advantage: ₹50.15 L
Buy — Net Wealth
₹14.46 L
Property − loan − all costs
Rent — Net Wealth
₹64.60 L
Down payment invested @ 12%
* This is a simplified model. Actual outcomes depend on property appreciation, investment returns, tax benefits, maintenance costs, and personal circumstances. Consult a financial advisor before making a decision.
Advertisement
About this tool
How to use Rent vs Buy Calculator
- 1Enter property value, down payment percentage, and home loan details
- 2Enter current monthly rent and expected annual rent growth
- 3Set expected property appreciation rate and investment return (if renting)
- 4Choose your time horizon and view which option builds more wealth
Frequently Asked Questions
Is it always better to buy than rent in India?
Not necessarily. In high-cost cities like Mumbai, Bangalore, and Delhi, rent-to-price ratios are very low (often 2–3%). If you can invest the down payment in equity funds at 12–15% returns, renting may build more wealth. The answer depends on your specific situation.
What costs are included in the 'buy' side?
The buy side includes: down payment, stamp duty (~6%), EMI payments (interest + principal), annual maintenance (1%), and property tax (0.5%). The property's future value and remaining loan are factored into net wealth.
What return rate should I use for the investment option?
For equity mutual funds (long term), 10–12% is a conservative estimate. For debt funds or FDs, use 6–8%. The calculator defaults to 12% as a reference for equity-based investing.
Related Tools
Advertisement