🏡 Real Estate Tool

Rent vs Buy Calculator

Compare the true total cost of renting vs buying a home including property appreciation, opportunity cost on down payment, maintenance, tax benefits and net worth impact.

🏠 Buying

Home price

₹

Down payment

Loan interest rate

Loan tenure

yrs

Maintenance & property tax

%/yr

Property appreciation

%/yr

🏡 Renting

Monthly rent

₹

Annual rent increase

%/yr

Security deposit (months)

Renter's opportunity cost

If you rent, your down payment remains invested. Enter the expected return on that investment below (in shared parameters).

⚙️ Shared parameters

Time horizon

yrs

Investment return (renter)

%/yr

Home loan tax benefit

% slab

BUYING 🏠 Total cost of buying — —

RENTING 🏡 Total cost of renting — —

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Net worth comparison after — years

—

Cost breakdown over — years

ItemBuy 🏠Rent 🏡

EMI / Rent payments——

Down payment——

Maintenance & tax——

Opportunity cost (down pmt)——

Tax benefit on home loan——

Property value gained——

Rent deposit (tied capital)——

Net cost——

Cost breakdown visualisation

EMI / Rent payments

Opportunity cost

Maintenance costs

Buying

Renting

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Key insight

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This analysis provides estimates based on your inputs and assumed growth rates. Actual results depend on real market conditions, interest rate changes, tax laws and personal circumstances. This is not financial advice — consult a qualified financial advisor before making a property decision.

How does this rent vs buy comparison work?

This calculator computes the true all-in cost of each option over your chosen time horizon. For buying, it includes EMIs, maintenance, opportunity cost on the down payment (what that money could earn if invested instead), minus property appreciation and tax benefits. For renting, it includes cumulative rent payments with annual increases, plus the growth of the money you did not tie up in a down payment.

The "net worth" comparison shows which path leaves you wealthier at the end of your time horizon — considering home equity built through buying versus investment portfolio growth through renting.

Frequently asked questions

Is it always better to buy than rent?

Not always. Buying is usually better over long time horizons (10+ years) in appreciating markets. Renting can be smarter if property prices are very high relative to rents (high price-to-rent ratio), if you plan to move within a few years, or if you can invest the difference at returns higher than property appreciation.

What is the opportunity cost of the down payment?

Opportunity cost is what your down payment could earn if invested in the market instead of used to buy a home. If your down payment is ₹12 lakh and you could earn 10% annually in equity funds, the opportunity cost over 10 years is significant — this calculator includes this in the comparison.

What tax benefits does buying provide?

Home buyers in India get: Section 80C deduction on principal repayment (up to ₹1.5L), Section 24b deduction on interest paid (up to ₹2L for self-occupied property), and Section 80EEA deduction for first-time buyers (up to ₹1.5L). Enter your tax slab to estimate the annual tax saved.

What is a healthy price-to-rent ratio?

Price-to-rent ratio = Home price ÷ Annual rent. A ratio below 15 generally favours buying. 15–20 is neutral. Above 20 often favours renting. In metro cities like Mumbai and Bengaluru, ratios of 30–50 are common, which strongly favours renting financially unless you expect high property appreciation.