Buy vs Rent Calculator
Should you buy a home or keep renting? Enter your numbers and see the 10-year financial comparison — including property appreciation, investment returns and tax benefits.
🏠 Buying
🏢 Renting
🏠 Net cost of buying
🏢 Net cost of renting
* This is a financial comparison only. Buying gives security, location stability and an asset. Renting gives flexibility. Non-financial factors matter too.
How the comparison works
- Buy path: Down payment + EMI payments + maintenance. Offset by: property value appreciation and tax saving on interest (Section 24b, up to ₹2L/year).
- Rent path: Total rent paid. Offset by: the investment return on the down payment amount invested instead.
- The comparison shows net wealth position at the end of the time horizon.
- Lower net cost = better financial outcome.
Questions
When does buying make more sense?
Generally when: property appreciation is high (7%+), you plan to stay 10+ years, loan rates are low, and you are in the 30% tax bracket (home loan interest deduction gives ₹60K+ tax saving per year).
When does renting make more sense?
When: you may relocate in 5 years, property prices are very high relative to rents (price-to-rent ratio above 20x annual rent), or you can earn 12%+ returns by investing the down payment.
Is this calculation exact?
No — it's a simplified model. Real calculations should account for registration costs, brokerage, GST on under-construction property, rental income if you sublet, and changing interest rates. Use this for directional guidance, not a final decision.