Rent vs Buy Calculator India
A rent vs buy calculator compares the cash you pay to own a home with the rent for a similar one. Enter the property price, the monthly rent, the loan rate and how long you plan to stay.
How the Rent vs Buy Calculator India works
The calculator assumes you pay 20% down and borrow the rest. The loan is repaid over the years you plan to stay.
Buying outflow is the down payment plus every EMI. Renting outflow is the monthly rent times the months you stay, kept flat.
It is a cash-outflow comparison only. It leaves out property price changes, rent increases, tax benefits, maintenance, registration costs and what the down payment could earn if invested.
Formula
Buy = 20% of price + EMI × months; Rent = monthly rent × months
- EMI is on 80% of the price, over the years you stay
- months = years you plan to stay × 12
Worked example: ₹1 crore home vs ₹28,000 rent, 8.5% loan, 10 years
- Down payment = ₹20 lakh, and the loan is ₹80 lakh.
- EMI over 10 years = ₹99,189 a month, against rent of ₹28,000.
- Buying outflow = ₹1.39 crore. Renting outflow = ₹33.6 lakh.
- But after buying you own the home, which renting does not give you. Weigh that against the extra cash.
₹1 crore home, 8.5% loan, ₹28,000 rent (not raised)| Years you stay | EMI | Total paid to buy | Total rent |
|---|
| 5 years | ₹1,64,132 | ₹1.18 crore | ₹16.8 lakh |
| 10 years | ₹99,189 | ₹1.39 crore | ₹33.6 lakh |
| 15 years | ₹78,779 | ₹1.62 crore | ₹50.4 lakh |
| 20 years | ₹69,426 | ₹1.87 crore | ₹67.2 lakh |
Illustrative, assuming a constant rate. Actual returns and rates vary.
Tips
- A short stay favours renting, because the EMI is squeezed into fewer years.
- Add maintenance, stamp duty and registration to the buying side before you decide.
- Rent usually rises over time, and the calculator keeps it flat. Allow for that in your own view.
- Buy when you plan to stay long and the EMI fits comfortably within your pay.
Want to know if your whole plan is on track? Get your free money score in about two minutes. No PAN, no Aadhaar.
About the Rent vs Buy Calculator India
Free rent vs buy calculator for India. Compare the cash you pay to own a home, including the loan and down payment, with renting a similar home.
Frequently asked questions
- Is buying always better than renting?
- Not always - it depends on rent, property price, loan costs, tenure, and opportunity cost of down payment.
- What is the price-to-rent ratio?
- The property price divided by a year's rent. In Indian metros it is often 30–40, which usually makes renting cheaper in the short run.
- How long should I stay for buying to pay off?
- Usually 7–10 years or more, so that price growth and saved rent can make up for stamp duty, interest and maintenance.