Buy

Buying is the better choice₹65,33,146 aheadover 20 years

Analysis Period

Years to compare20 yr

Renting

Monthly Rentieffective ₹12,000/mo

₹

Security Depositi₹30,000

months

HRA Tax Benefiti

Yearly Rent Increasei

%/yr

Return on Invested Savingsi

%/yr

Buying

Property Costi

₹

Downpaymenti₹12,50,000

Registrationi₹2,50,000

Brokeragei₹75,000

Loan Interest Ratei

%/yr

Income Tax Bracketi

Maintenancei₹25,000/yr

%/yr

Maintenance Increasei

%/yr

Select City (for appreciation)

Property Appreciationi

%/yr

Rent vs Buy Calculator

The definitive calculator to decide whether you should rent or buy a home in India.

Renting assumptions

Analysis period20 years

Monthly rent₹15,000

Effective rent (after HRA)₹12,000/mo

Security deposit2 mo (₹30,000)

HRA tax benefit20%

Yearly rent increase10%/yr

Return on invested savings10%/yr

Buying assumptions

Property cost₹50,00,000

Downpayment25% (₹12,50,000)

Registration5% (₹2,50,000)

Brokerage1.5% (₹75,000)

Loan interest rate10%/yr

Income tax bracket20%

Maintenance0.5%/yr

Maintenance increase5%/yr

Property appreciation8%/yr

EMI per month

₹36,188

effective ₹31,367/mo after tax

Property value at end

₹2,33,04,786

8% appreciation/yr

Better off by

₹65,33,146

choosing the better option

Rentingtap a row for the math

Every month's rent added up over all 20 years. You start at ₹12,000/mo (after your 20% HRA tax break) and it grows 10% each year.

Year 1: ₹1,44,000 → Year 20: ₹8,80,691 ⇒ ₹82,47,600 total

Your 2-month deposit (₹30,000) sits with the landlord earning nothing. You get it back later, but you lose the 10%/yr growth it could have earned if invested.

₹30,000 × (1 + 10%)^20 − ₹30,000 = ₹1,71,825

Because you didn't buy, the money a buyer would sink into downpayment + registration + brokerage (₹15,75,000) stays invested at 10%/yr for 20 years.

₹15,75,000 × (1 + 10%)^20 = ₹1,05,95,812

A buyer's EMI (₹4,34,260/yr) is bigger than your rent. Each year that difference is invested at 10%/yr. Early years contribute more since they compound longer.

Σ (EMI − that year's rent), each grown to year 20 = ₹72,58,408

Everything your invested money grew into.

₹1,05,95,812 (downpayment) + ₹72,58,408 (savings) = ₹1,78,54,221

What renting leaves you with: your investment gains, minus the rent you paid and the deposit's lost growth.

₹1,78,54,221 − ₹82,47,600 − ₹1,71,825 = ₹94,34,796

Buyingtap a row for the math

Over 20 years you pay ₹36,188/mo in EMI. Most of the early EMIs are interest, not principal. This is the total interest handed to the bank on top of the loan.

₹36,188 × 12 × 20 − loan = ₹49,35,195

Society charges, repairs and upkeep. Starts at ₹25,000/yr (0.5% of property value) and rises 5%/yr.

₹25,000/yr compounding 5%/yr for 20 yrs = ₹8,26,649

Paid upfront on day one: your 25% downpayment plus 5% government registration.

₹12,50,000 (downpayment) + ₹2,50,000 (registration) = ₹15,00,000

One-time agent commission at purchase, 1.5% of the property price.

₹50,00,000 × 1.5% = ₹75,000

Every rupee ownership costs you over 20 years.

interest + maintenance + downpayment + registration + brokerage = ₹73,36,844

What buying leaves you with: the home's projected resale value minus everything it cost to own.

₹2,33,04,786 (property value) − ₹73,36,844 (total cost) = ₹1,59,67,942

Net benefit over time

Renting

Buying

Net benefit = wealth gained minus total cost. Renting: (invested downpayment + invested savings) − total rent − security-deposit opportunity cost. Buying: future property value − (interest + maintenance + downpayment + registration + brokerage). Sec 24 tax rebate applied (simplified).

Numbers are estimates. Consult a qualified financial advisor before making major decisions. · rentvsbuy.in

How it works

Compares the long-term financial outcome of renting vs buying over your chosen horizon. Buying adds up all ownership costs (loan interest, maintenance, registration) against projected property appreciation. Renting assumes you invest the freed-up downpayment and any EMI-rent surplus at your expected return rate.

When to use this

When deciding whether to buy a home or continue renting. Especially useful if you receive HRA benefits or want to compare locking capital into property vs investing in mutual funds. Before running this, use the Home Loan calculator to know your EMI, then come back here to see the full picture.

Frequently asked questions

What does “net benefit” mean?

Total wealth generated minus total money spent for each path. The option with the higher net benefit leaves you financially better off.

Why might renting win even when property appreciates?

Buying has large hidden costs. Loan interest alone can equal the purchase price over 20 years. If your invested downpayment earns more than property appreciation (e.g. 12% equity vs 6% property), renting and investing wins.

What appreciation rate should I use?

Indian metros have historically appreciated 6–9% annually over 10–20 year periods. Use 6–7% for conservative estimates and 9% for optimistic scenarios.