Free calculator
Rent vs buy calculator
Includes what your down payment would earn if invested, rent increases, home price growth, maintenance and one-time purchase costs.
Your details
₹60 L
₹
₹
years
%
% p.a.
years
% / yr
% / yr
If you rent and invest the down payment
% / yr
₹/ mo
Stamp duty, registration, interiors
% of price
Over 10 years
Buying works out cheaper
by about ₹9.31 L
- Net cost of buying
- ₹6,24,998
- Net cost of renting
- ₹15,56,243
- Monthly EMI
- ₹41,656
- Home value after 10 years
- ₹97,73,368
- Buying becomes cheaper from
- Year 7
Cumulative net cost, year by year
Where the lines cross is the year buying starts to pay off.
Year-by-year table
| Year | Buying | Renting | Cheaper |
|---|---|---|---|
| 1 | ₹6.2 L | ₹1.32 L | Rent |
| 2 | ₹7.37 L | ₹2.69 L | Rent |
| 3 | ₹8.29 L | ₹4.11 L | Rent |
| 4 | ₹8.95 L | ₹5.58 L | Rent |
| 5 | ₹9.32 L | ₹7.1 L | Rent |
| 6 | ₹9.39 L | ₹8.68 L | Rent |
| 7 | ₹9.14 L | ₹10.32 L | Buy |
| 8 | ₹8.55 L | ₹12.01 L | Buy |
| 9 | ₹7.59 L | ₹13.76 L | Buy |
| 10 | ₹6.25 L | ₹15.56 L | Buy |
Net cost of buying = down payment + EMIs + maintenance + one-time costs − your equity (home value − loan outstanding). Net cost of renting = rent paid − what the down payment would have earned if invested. Indicative only.
Frequently asked questions
Is it better to rent or buy?
Gross rental yields in most Indian cities are around 2–4%, below home-loan rates, so renting is often cheaper in the short run. Buying tends to win over longer horizons if you stay put and prices grow steadily.
What does 'net cost' mean?
For buying: everything you pay minus the equity you own at the end. For renting: rent paid minus the returns your down payment would have earned if invested instead.
