Rent vs Buy Calculator (India)
This calculator is designed for Indian home buyers and renters
Compare renting vs buying using Indian home loan rules, tax benefits, and opportunity cost
Learn more about rent vs buy
This calculator compares long-term net worth, not just monthly rent vs EMI, including Indian home loan costs, taxes, and investment returns.
It includes opportunity cost, investment returns, and home equity growth over your chosen timeframe.
Unlike simple breakeven calculators, this tool shows which option builds more wealth by modeling what happens when you invest the difference between renting and buying costs.
How this rent vs buy calculator compares long-term net worth
Compares renting vs buying by tracking net financial position over time. Shows complete wealth-building picture.
Renting: Tracks rent payments plus investment growth of down payment savings and monthly cash flow difference. In India, rental brokerage is often paid upfront and reduces early-year investable capital.
Buying: Tracks mortgage payments, equity buildup, and ownership costs (ongoing maintenance or society charges). Buying includes one-time upfront costs (stamp duty, registration, and brokerage), which reduce investable capital. Tax benefits are applied only if you choose to claim them.
In India, both renting and buying often involve upfront brokerage or transaction costs, which reduce initial investable capital. Important: Brokerage affects starting net worth, not monthly cash flow.
Opportunity cost of down payment often determines the outcome. In India, large down payments and transaction costs significantly affect opportunity cost. Break-even analysis ignores net worth accumulation.
When renting builds more wealth than buying — and vice versa
Renting Often Wins
- High home prices relative to rent
- Short time horizon (under 7 years)
- Higher expected investment returns (e.g. equity mutual funds)
- Low home appreciation expected
- High ownership costs
Buying Often Wins
- Long time horizon (10+ years)
- Very long holding periods (15–25+ years)
- Stable home appreciation (3-5%)
- Lower investment returns expected
- Rising rental costs
- Home loan tax benefits (if claimed under old tax regime)
Important assumptions & limitations
Small changes in assumptions create different outcomes. 1% difference in appreciation or returns can change results significantly.
- • Tax benefits are optional and depend on your tax regime and personal situation
- • Includes upfront purchase costs, excludes moving expenses
- • Simplified model with adjustable key assumptions
- • Results depend on input accuracy
Shows consequences based on inputs. Not investment advice.