My Money

Rent vs buy calculator

Buying feels like building wealth; renting feels like losing money. The honest answer depends on rent, prices and returns. This compares your net worth both ways, year by year.

₹
₹80 lakh
₹
Rent is 3.8% of the price a year
 yrs
 %
 %
Loan & costs
 %
 %
 yrs
 %
 %
 %
After 15 years, renting leaves you richer by
₹50.65 L
Renting and investing stays ahead for the whole period

Net worth, year by year

0₹50 L₹1 Cr₹1.5 Cr₹2 CrYr 0Yr 3Yr 6Yr 9Yr 12Yr 15
Buy: home value − loan + savingsRent: invested savings
Home-loan EMI
₹55,541
Cash needed upfront
₹21,60,000
Home worth in 15 yrs
₹1.66 Cr
Loan still owed
₹27.07 L
Rent is a healthy 3.8% of the price a year, which makes owning more attractive than in most big Indian cities.
Leaves out home-loan tax benefits (old regime only), selling costs, and the peace of mind of owning. Weigh those yourself.
How it’s calculated

The maths, in plain words

If you buy

You pay the down payment, stamp duty, EMIs and maintenance. You own a home that appreciates, minus what you still owe the bank.

If you rent

You invest the down payment and stamp duty instead, plus any month your rent is less than the EMI + maintenance.

Fair comparison

When rent overtakes the buyer’s costs (or the loan ends), the buyer invests the difference too. We compare net worth at every year.

Questions

People also ask

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Is it better to rent or buy in India?
In big cities rent is often only 2–3% of a home’s price a year, while loans cost 8–9%. That makes renting and investing competitive unless property prices rise quickly or you stay a long time.
What does this leave out?
Tax benefits on home loans (old regime only), selling costs, and the non-money value of owning — stability, freedom to renovate. Weigh those yourself.
Understand it

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