MoneyCalcIndia
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Rent vs Buy Calculator

Compare the real cost of renting vs buying a home in India, including stamp duty, opportunity cost, and property appreciation.

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🏢 Renting is better

Over 15 years, renting saves ₹1,67,24,078

Buying breaks even at Year 1

Buying

EMI₹55,541/mo
Upfront Cost₹21,10,000
Total Interest₹35,97,324
Maintenance₹7,76,828
Property Value₹1,66,31,425
Tax Saved₹15,64,802

Renting

Current Rent₹25,000/mo
Yr 15 Rent₹49,498/mo
Total Rent Paid₹64,73,569
Corpus Built₹2,05,09,723

Net Worth Comparison: Buy vs Rent

When the blue line (Buy) crosses above the orange line (Rent), buying becomes more favourable.

▶How is this calculated?

Buying cost = Down payment + Stamp duty + Total EMI + Maintenance - Tax benefits - Property appreciation

Renting cost = Total rent paid - Investment corpus built (from investing the down payment + monthly surplus)

The calculator compares net worth in both scenarios: as a buyer (property value minus costs) vs as a renter (investment corpus minus total rent). The break-even year is when buying overtakes renting.

Frequently Asked Questions

What factors should I consider when deciding to rent or buy?▼
Key factors: your holding period (buying makes more sense over 7+ years), stamp duty and registration costs (5-7% upfront), opportunity cost of down payment, property appreciation in your area, rent-to-EMI ratio, job stability, and mobility needs.
What is stamp duty and how much is it?▼
Stamp duty is a state government tax on property transactions. It ranges from 4% to 7% of property value depending on the state. Maharashtra charges 6%, Karnataka 5%, Delhi 4-6%. Some states offer lower rates for women buyers.
What is the opportunity cost in this calculation?▼
When you buy, your down payment and stamp duty are locked in property. If you rent instead, that same money can be invested. The calculator compares the returns you'd earn on that invested money against property appreciation.
How long should I hold a property for buying to make sense?▼
Generally, buying becomes more favourable after 7-10 years due to high upfront costs (stamp duty, registration, brokerage). If you plan to stay less than 5 years, renting is almost always cheaper.

This calculator provides estimates for informational purposes only. Actual outcomes may vary based on applicable laws, financial institutions, products and individual circumstances.