Rent vs Buy Calculator — True Cost Comparison India
Compare cumulative rent vs buy costs over 5-20 years. Includes EMI, maintenance, property appreciation, investment returns on down payment, and break-even year.
Rent scenario (10 years)
Buy scenario (10 years)
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Frequently Asked Questions
Quick answers to common questions
Is buying always better than renting in India?+
Not always. Buying is better when: property appreciates faster than investment returns on rent savings, you plan to stay 7+ years, and EMI + maintenance is comparable to rent. Renting is better when: property is expensive relative to rent (rent yield < 3%), you might move in under 5 years, or the down payment can earn better returns invested in mutual funds.
What is the price-to-rent ratio?+
Price-to-Rent ratio = Property Price / Annual Rent. Interpretation: below 15 = buying is clearly better, 15-20 = buying may be better depending on plans, 20-25 = renting is often smarter, above 25 = renting is strongly favoured financially. Mumbai P/R ratio is often 30-50+, making buying financially questionable without high appreciation expectations.
How do I calculate the true cost of buying?+
True buying cost includes: EMI × tenure, stamp duty + registration (5-8%), home maintenance (1-2%/year), property tax, society charges, insurance, lost opportunity cost on down payment invested elsewhere. Minus: tax savings (80C + 24b), and terminal property value appreciation.