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Home›Rent vs Buy Calculator

Rent vs Buy Calculator

Should you rent or buy a house in India? Compare the true cost of both options including EMI, stamp duty, appreciation, maintenance, and opportunity cost of your down payment.

Over 15 years, you're better off

🏢 Renting

You save ₹94.2L by rentingBuying breaks even at year 1

🏠 If You Buy

🏢 If You Rent

🏠 Buying Costs (15yr)

Down Payment₹10,00,000
Stamp Duty + Registration₹3,50,000
EMI × 15 years₹62,48,327
Monthly EMI₹34,713
Total Maintenance₹10,78,928

Total Spent₹86,77,255
Home Value in 15yr₹1.2Cr
Net Cost+₹33.1L profit

🏢 Renting Costs (15yr)

Total Rent Paid₹38,84,141
Current Monthly Rent₹15,000
Rent in Year 15₹29,699

Down Payment Invested₹73.9L
Monthly Savings Invested₹92.2L
Total Wealth Built₹1.7Cr
Net Position+₹1.3Cr wealth

📈 Buy vs Rent: Net Cost Over Time

🟢 Buy🔵 RentLower net cost = better option. Below zero = net profit.

💡 Smart Insights

Your EMI of ₹34,713/month is 2.3x your current rent. That's a significant jump — make sure it fits your budget.

Price-to-Rent ratio: 27.8. Above 20 means renting is usually cheaper — the property is overpriced relative to rents.

Upfront cost of buying: ₹13.5L (27% of home price). That's 7.5 years of rent.

Buying breaks even at year 1. That's reasonable — buying makes sense if you'll stay.

💡 Related Tools

EMIHome Loan EMISaveLatte Factor — Hidden CostsPlanRetirement PlannerInvestSIP Instead of EMI?

Frequently Asked Questions

Is it better to rent or buy a house in India?▼
It depends on home prices, rent, interest rates, and how long you plan to stay. In expensive cities like Mumbai, renting often wins. In cheaper cities, buying can be better. This calculator helps you compare.
What is opportunity cost of buying a house?▼
When you use ₹10-20 lakh for a down payment, that money could have been invested in mutual funds earning 12-15%. This 'lost' return is the opportunity cost. Our calculator factors this in.
What hidden costs of buying does this include?▼
Stamp duty (5-7%), registration (1%), annual maintenance (1% of property value), and the time value of your down payment. Most calculators ignore these.
How does home appreciation affect the decision?▼
If home prices grow faster than your investment returns, buying wins. But in India, real estate appreciation has been 3-8% while equity markets have returned 12-15% historically.
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