What is the Buy vs Rent Calculator?
This calculator helps you make one of life's biggest financial decisions — should you buy a home or continue renting and invest the difference? It compares the total cost of ownership (EMI, maintenance, registration) against renting (rent paid, opportunity cost) over a chosen period, factoring in property appreciation and investment returns.
Benefits of Using This Calculator
Year-by-Year View
See exactly when buying breaks even over renting — typically 8–12 years in Indian metros.
Opportunity Cost
Accounts for returns you'd earn by investing the down payment and EMI savings in the market.
Property Appreciation
Factors in realistic home value growth so you see the full picture of owning an asset.
Clear Verdict
Get a simple recommendation based on your specific numbers — not generic advice.
How to Use This Calculator?
Enter Property Details
Add the property price, your down payment %, loan rate, and expected property appreciation.
Enter Rent Details
Add current monthly rent, expected annual rent increase, and expected investment return.
Set Time Horizon
Choose the number of years you want to compare — typically 10, 15, or 20 years.
Get Verdict
See the net worth for buying vs renting year by year and which option wins for you.
Frequently Asked Questions — Buy vs Rent
Not always. In high-cost metros like Mumbai, Delhi, and Bengaluru, the price-to-rent ratio is very high, meaning renting and investing the difference often builds more wealth for the first 10–12 years. After that, property ownership and equity typically win. In Tier 2 cities, buying tends to make sense earlier due to lower property prices relative to rent.
The Price-to-Rent (P/R) ratio is the property price divided by annual rent. A ratio below 15 favours buying; 15–20 is neutral; above 20 favours renting. Mumbai's P/R ratio is typically 30–40, meaning renting is often financially better in the short-to-medium term. Use our calculator with your actual numbers for a personalised answer.
Use the realistic long-term return you expect from your investments. Equity mutual funds (Nifty 50 index funds) have historically delivered 12–13% CAGR over 15+ years in India. If you are conservative, use 10–11%. Do not use FD rates (6–7%) as a benchmark for long-term investing, as inflation erodes those returns.
The current version does not factor in Section 80C (₹1.5L principal deduction) and Section 24(b) (₹2L interest deduction) under the Old Tax Regime, as these are not available under the New Tax Regime. If you claim these deductions, buying becomes even more advantageous — use our Income Tax Calculator to estimate your tax savings separately.
Indian residential real estate has appreciated at 4–8% per annum historically, depending on the city and locality. Metros like Hyderabad and Bengaluru have seen 7–10% in recent years, while Mumbai and Delhi are closer to 4–6%. A conservative assumption of 5–6% is recommended for long-term planning. Avoid assuming 10%+ appreciation as it rarely sustains over 20+ years.