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Rent vs Buy Calculator

Compare the long-term financial implications of renting versus buying a home in India.

Property Details
Buying Scenario
Renting Scenario
Return rate if you invest the down payment amount
Analysis Period
Rent vs Buy Comparison Results
Total Cost of Buying

₹ 0

Total Cost of Renting

₹ 0

Verdict

Year-by-Year Comparison
Break-Even Analysis

Calculating break-even point...

Understanding Rent vs Buy Decision

The decision to rent or buy a home is one of the biggest financial decisions you'll make. Here are some factors to consider:

Advantages of Buying
  • Build equity over time instead of paying rent
  • Potential for property appreciation
  • Freedom to modify and personalize your home
  • Fixed housing costs with a fixed-rate mortgage
  • Tax benefits on home loan interest
Advantages of Renting
  • Lower upfront costs (no down payment)
  • Flexibility to move without selling
  • No maintenance or repair costs
  • No property tax or homeowners insurance
  • Opportunity to invest the down payment elsewhere
Non-Financial Factors

Remember that the rent vs buy decision isn't just financial. Consider lifestyle factors like:

  • How long you plan to stay in the area
  • Desire for stability vs flexibility
  • Willingness to handle maintenance and repairs
  • Emotional value of homeownership
How This Calculator Works

This calculator compares the total cost of renting versus buying over your specified time horizon. It considers:

  • For Buying: Down payment, loan EMI, property tax, maintenance, and property appreciation
  • For Renting: Monthly rent, security deposit, annual rent increases, and potential investment returns on the down payment amount

The calculator provides a year-by-year comparison and identifies when (if ever) buying becomes more economical than renting.

Indian Housing Market

The Indian housing market has unique characteristics:

  • Property prices in major cities have seen significant appreciation over the long term
  • Home loan interest rates typically range from 7-9%
  • Rental yields are relatively low (2-3% in most cities)
  • Tax benefits are available for home loan interest and principal repayment

These factors should be considered when making your rent vs buy decision.