Rent vs Buy Calculator
Compare buying a home with a loan against renting and investing the difference, and see your net worth either way after the years you choose.
About Rent vs Buy Calculator
This free rent vs buy calculator helps you decide whether to buy a house or keep renting in India. Enter the property price, down payment, home loan rate and tenure, stamp duty and registration, maintenance and the price growth you expect, along with the rent for a similar home.
It compares both choices fairly: the renter invests the down payment, purchase costs and any monthly saving, while the buyer builds equity in the home. A chart shows net worth year by year so you can see when buying overtakes renting, if it does. It runs in your browser.
How to use Rent vs Buy Calculator
- Enter the property price, down payment, loan rate and tenure.
- Add stamp duty and registration, yearly maintenance and the price growth you expect.
- Enter the rent for a similar home, the yearly rent increase and what your savings would earn.
- Compare net worth after the period — the higher one is the better choice on these assumptions.
Frequently asked questions
How does the comparison work?
Both sides spend the same money each month. The buyer pays the down payment, stamp duty, EMI and maintenance. The renter pays rent and invests the down payment, purchase costs and any monthly difference. At the end, the buyer owns the home minus the loan left; the renter owns the investments.
What is a reasonable rent yield?
Residential rents in Indian cities are often only 2–4% of the property value a year, while home loans cost 8–9%. That gap is why renting and investing often comes out ahead over shorter periods, while buying wins when prices rise quickly or you stay long.
What is not included?
Tax benefits on home loan interest and principal (old regime), capital gains tax on selling, brokerage and the non-financial value of owning a home are not included.
Is it better to rent or buy a house in India?
It depends on the price-to-rent ratio, loan rate, how long you stay and how fast prices rise. With rents at 2–4% of the price and loans at 8–9%, renting and investing often wins over shorter periods.
Does the calculator include home loan tax benefits?
No. Old-regime deductions for home loan interest and principal are not included, so buying may look slightly better than shown if you use them.
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