Calculator
Rent vs Buy Calculator
A month-by-month net worth simulation, not a single formula — see exactly which year (if any) buying overtakes renting-and-investing, under assumptions you can see and change.
Renting wins at these assumptions — investing the difference stays ahead by ₹33,01,756 through year 20.
Assumption preset
7% is the commonly-cited long-run Indian metro real-estate average; 10% assumes the invested difference goes into a diversified equity allocation. Adjust both for your city and risk appetite.
Buy-side assumptions
7% is the commonly-cited long-run Indian metro average — adjust for your specific city and locality.
Stamp duty + registration + brokerage, typically 6-8% of property value across most Indian states — often left out of rent-vs-buy math, which quietly favors buying.
Indian municipal property tax is much lower than Western norms — commonly 0.2-1% of property value a year, depending on city and state.
Society upkeep typically runs around 1% of property value a year — higher for large-amenity gated communities.
Rent & investing assumptions
5% matches the escalation clause in most standard Indian rental agreements.
What you’d actually earn investing the down payment and every month’s saved cash instead of buying — use a lower rate (6-7%) if that money would sit in an FD rather than equity.
Tax treatment (80C + 24(b))
Regime
The new regime doesn’t allow 80C (principal) or 24(b) (interest) home-loan deductions — this benefit is toggled OFF here, not silently included in either side’s numbers.
Buy — Net Worth
₹2,32,18,107
at year 20
Rent — Net Worth
₹2,65,19,863
at year 20
Crossover Year
Never within horizon
Monthly EMI
₹41,656
on ₹48,00,000 borrowed
- Buy — net worth
- Rent — net worth
Buy net worth is the appreciated home value minus your remaining loan balance — what you'd actually walk away with if you sold. Rent net worth is the down payment plus every month's buy-cost-minus-rent difference, invested at your chosen return rate — what your portfolio is worth if you rented instead and invested the difference.
When the buy side costs meaningfully more than rent each month (EMI + property tax + maintenance − any tax benefit, vs the rent you'd pay), that gap compounds in the renter's portfolio. If your invested-difference return rate is higher than your home's appreciation rate, renting can win even over a long horizon — this calculator shows that honestly instead of assuming buying always wins.
Stamp duty, registration, and brokerage typically add up to 6-8% of the property value, paid once at purchase. Most rent-vs-buy calculators leave this out, which quietly makes buying look better than it is — it's a real cost here, and editable.
Start from a preset (conservative/moderate/optimistic) for the appreciation and return-rate assumptions, then adjust property value, rent, and loan terms to your actual situation — the verdict updates live as you change any input.
How this calculator differs from a typical rent-vs-buy tool
Most rent-vs-buy calculators quietly assume buying wins and work backward from there — a stamp duty and registration cost left out here, a below-market investment return assumed there. This one runs an actual month-by-month simulation: the buy side pays its EMI, property tax, maintenance, and one-time purchase costs; the rent side pays rent and invests everything it saves relative to buying, at a return rate you set. Every assumption is visible and editable, and the verdict is whichever side actually has the higher net worth at your horizon — including an honest “renting wins” result when that’s what the numbers say.
Disclaimer:This is a projection under the assumptions you set, not a forecast or guarantee — actual property appreciation, investment returns, and rent inflation will differ from any preset. It also doesn’t capture non-financial factors (stability, flexibility to relocate, emotional value of ownership) that reasonably factor into a real rent-vs-buy decision.
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