What is Rent vs Buy Calculator?
Compare total cost of renting vs buying a home over 10-20 years and make the right financial decision Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Buying includes: Down payment, EMI payments, maintenance, taxes MINUS property appreciation. Renting includes: Total rent paid over years with annual rent increases.
How to Use This Calculator
- Enter property price and down payment amount
- Enter home loan interest rate and tenure
- Enter expected monthly rent for the same property
- Enter expected property appreciation and rent increase rates
- Click Calculate to see 10/20/30 year cost comparison
Worked Example
Property: ₹1 Cr | Down Payment: ₹20L | Loan: 8.5% 20yr | Rent: ₹25,000 → After 20 years: Buying total cost ₹1.8 Cr | Renting total cost ₹1.1 Cr (but no asset)
Why Use This Tool?
- Make data-driven decision: rent or buy
- Accounts for opportunity cost of down payment
- See break-even year when buying becomes better
- Customize with your city's real estate market data
Frequently Asked Questions
Is it better to rent or buy a house in India?
It depends on your financial situation, city, and life plans. Buying makes more sense if you plan to stay 10+ years, have stable income, and property prices are reasonable. Renting is better for flexibility and in cities with high price-to-rent ratios.
What is the price-to-rent ratio?
Price-to-rent ratio = Property Price ÷ Annual Rent. A ratio above 20 means renting is more economical. Mumbai and Delhi often have ratios of 30-40×, making renting financially smarter in many cases.
Explore more real estate calculators or try our other free financial tools.