Rent vs Buy Calculator - Should You Buy or Rent?
Compare the total cost of buying vs renting a home over time. Make an informed decision with real numbers including EMI, appreciation, and rent inflation.
Calculate Rent vs Buy
Current market price of the property
Your upfront payment (typically 20%)
Annual home loan interest rate
Home loan repayment period
Rent you'd pay if not buying
Expected yearly rent hike
Expected annual property value growth
How many years to compare
Net Wealth from Buying
₹65,76,695
Total Buy Cost (EMI + Down + Stamp)
₹1,13,97,491
Total Rent Paid
₹75,38,928
Property Value After Period
₹1,79,74,186
How to Use This Rent vs Buy Calculator
Using our Rent vs Buy Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.
All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.
The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.
Formula & Explanation
Buy Cost = Down Payment + Total EMI + Stamp Duty; Rent Cost = Σ(Monthly Rent × (1+increase)^year × 12)The calculator compares total outflow for buying (down payment + EMI payments + 7% stamp duty/registration) against total rent paid (with annual rent increases of 5-10%). Property appreciation is factored in to show the asset value you build by buying. The verdict considers net wealth position after the chosen period.
Calculation Examples
₹75L Property vs ₹25K Rent
Buy ₹75L flat (20% down, 8.5%, 20yr) vs rent ₹25K (7% annual increase), 15 years
Property value: ₹1.8 Cr | Total rent: ₹75L | Buying builds more wealth
Benefits
- Compare true cost of both options
- Factor in property appreciation
- Account for rent inflation
- Make data-driven decision
- Understand long-term impact
Use Cases
- Home buying decision
- City relocation planning
- Investment vs property
- Young professional planning
- Family financial planning
About Rent vs Buy Calculator
Our Rent vs Buy Calculator helps you make one of life's biggest financial decisions by comparing the true cost of buying a home (EMI + down payment + stamp duty) against renting (rent + annual increases) over your chosen time horizon. It factors in property appreciation to show which option builds more wealth.
Frequently Asked Questions
It depends on your city, property prices, and how long you'll stay. Generally, buying makes sense if: (1) you'll stay 7+ years, (2) EMI is less than 2x your rent, (3) property appreciation exceeds 5-6% annually. In expensive cities like Mumbai, renting often makes more financial sense.
Price-to-rent ratio = Property Price / Annual Rent. If this ratio is below 15, buying is favorable. Between 15-20, it's neutral. Above 20, renting is financially better. In most Indian metros, this ratio is 25-35, suggesting renting is often cheaper.
This simplified calculator doesn't include tax benefits. Home loan buyers can save ₹2-3.5 lakh/year in tax (Section 24b interest deduction + Section 80C principal). This makes buying more attractive, especially for those in the 30% tax bracket.
The down payment locked in property could earn 10-12% in equity mutual funds. Over 15-20 years, this opportunity cost is significant. However, property provides leverage (you control a ₹75L asset with ₹15L down payment) which equity doesn't.