Rent vs Buy Calculator — The Real Financial Answer for India
Stop guessing. Compare the true 10–20 year cost of renting vs buying a home in India — EMI, appreciation, rent growth, stamp duty, and investment returns all factored in.
What you'll need
- Property price and down payment amount
- Equivalent monthly rent for a similar home
- Expected holding period (years)
- Home loan interest rate
How It Works
Enter property and rent details
Provide the property price, down payment amount, and equivalent monthly rent for a similar property.
Set your assumptions
Input expected interest rate, property appreciation, rent growth, and how long you plan to stay.
See the verdict
Get a clear financial comparison — total cost of buying vs renting over your holding period, plus break-even year.
Rent vs Buy — Typical 10-Year Scenarios
| Property Value | Monthly EMI | Monthly Rent | Better Choice (10yr) |
|---|---|---|---|
| ₹50 Lakh | ~₹44,000 | ₹18,000 | Rent (short stay) |
| ₹75 Lakh | ~₹66,000 | ₹25,000 | Depends on appreciation |
| ₹1 Crore | ~₹87,000 | ₹30,000 | Buy if staying 15+ yrs |
| ₹1.5 Crore | ~₹1.31L | ₹40,000 | Buy if staying 15+ yrs |
Assumes 8.75% rate, 20yr tenure, 20% down, 6% appreciation, 7% rent growth, 8% investment return. Actual results vary.
Frequently asked questions
Is it better to rent or buy a house in India?
It depends on how long you plan to stay. Buying generally makes more financial sense if you hold for 10+ years, because property appreciation and building equity offset the higher upfront costs. For stays under 5–7 years, renting is often cheaper when you factor in stamp duty, loan interest, and opportunity cost of the down payment.
What is the price-to-rent ratio in Indian cities?
In Indian metros, the price-to-rent ratio (property price ÷ annual rent) is typically 25–40x, meaning properties are expensive relative to rents. Mumbai and Delhi NCR often show ratios above 35x, making renting financially attractive in the short term. Cities like Pune and Hyderabad tend to have lower ratios around 20–25x.
What hidden costs should I factor when buying a home in India?
Key buying costs beyond the property price include: stamp duty (4–7%), registration fee (~1%), GST on under-construction properties (1–5%), home loan processing fee (0.5–1%), legal/documentation charges, society maintenance deposits, and ongoing maintenance. Together these can add 8–12% to the purchase price.
How does property appreciation affect the rent vs buy decision?
Property appreciation is the biggest driver of the buy decision. At 6% annual appreciation, a ₹1 crore property becomes ₹1.79 crore in 10 years — this capital gain often makes buying financially superior despite higher EMIs. However, appreciation is not guaranteed and varies significantly by location and market conditions.
Authoritative resources
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