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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.
Educational calculators — always consult a licensed professional before making financial decisions.
Enter the current market value of the property you're considering buying.
Typically 10–20% of property value. Banks fund up to 80–90%.
The rent you would pay for an equivalent property in the same area.
The longer you stay, the more buying tends to make financial sense.
Medium term — break-even zone for most cities.
Current home loan rates from major banks range from 8.5% to 9.5%.
Historical average in Indian metros is 5–8% per year.
Rents in India typically increase 5–10% per year.
Buying saves you
₹33.18 L
Buying looks financially better · over 10 years
This is a simplified financial comparison. It does not account for tax benefits on home loan, maintenance costs, brokerage, or opportunity costs beyond the down payment. Consult a financial advisor for personalized advice.
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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.
Authoritative resources
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.
Ready to find your answer?
Back to the calculator ↑Rent vs Buy Calculator India is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.