Rent vs Buy Calculator
Compare renting vs buying a house in India
Property Details
Loan & Rent
Tax & Assumptions
HRA deduction not available in new tax regime
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₹55,541
Monthly EMI
vs ₹25,000 rent (now)
₹22,40,000
Upfront Cost
Down payment + Stamp duty
₹22,54,221
Buy Net Worth
After 15 years
₹81,13,366
Rent Net Worth
After 15 years
🏢 Renting is Better
You'll be ₹58,59,145 wealthier by renting
After 15 years:
- Buying net worth: ₹22,54,221
- Renting net worth: ₹81,13,366
This includes tax benefits (Section 24, 80C, HRA), property appreciation, maintenance, rent inflation, and investment returns on saved capital.
Net Worth Comparison
Wealth accumulation over 15 years
Year-by-Year Analysis
| Year | Buy Net Worth | Rent Net Worth | Property Value | Monthly Rent | Loan Balance |
|---|---|---|---|---|---|
| 1 | ₹-7,83,914 | ₹25,78,953 | ₹84,80,000 | ₹26,250 | ₹62,72,625 |
| 2 | ₹-8,92,856 | ₹29,28,431 | ₹89,88,800 | ₹27,563 | ₹61,33,992 |
| 3 | ₹-9,64,411 | ₹32,88,188 | ₹95,28,128 | ₹28,941 | ₹59,83,105 |
| 4 | ₹-9,95,985 | ₹36,57,876 | ₹1,00,99,816 | ₹30,388 | ₹58,18,880 |
| 5 | ₹-9,84,802 | ₹40,37,024 | ₹1,07,05,805 | ₹31,907 | ₹56,40,140 |
| 6 | ₹-9,27,884 | ₹44,25,022 | ₹1,13,48,153 | ₹33,502 | ₹54,45,600 |
| 7 | ₹-8,22,038 | ₹48,21,100 | ₹1,20,29,042 | ₹35,178 | ₹52,33,865 |
| 8 | ₹-6,63,842 | ₹52,24,303 | ₹1,27,50,785 | ₹36,936 | ₹50,03,415 |
| 9 | ₹-4,49,621 | ₹56,33,467 | ₹1,35,15,832 | ₹38,783 | ₹47,52,595 |
| 10 | ₹-1,75,437 | ₹60,47,186 | ₹1,43,26,782 | ₹40,722 | ₹44,79,605 |
| 11 | ₹1,62,938 | ₹64,63,778 | ₹1,51,86,388 | ₹42,758 | ₹41,82,485 |
| 12 | ₹5,70,040 | ₹68,81,249 | ₹1,60,97,572 | ₹44,896 | ₹38,59,102 |
| 13 | ₹10,50,739 | ₹72,97,251 | ₹1,70,63,426 | ₹47,141 | ₹35,07,135 |
| 14 | ₹16,10,262 | ₹77,09,028 | ₹1,80,87,232 | ₹49,498 | ₹31,24,057 |
| 15 | ₹22,54,221 | ₹81,13,366 | ₹1,91,72,466 | ₹51,973 | ₹27,07,119 |
Tax Benefits Applied
Buy Scenario (New Regime):
- No Section 24 or 80C benefits
- New regime doesn't allow home loan deductions
Rent Scenario (New Regime):
- No HRA deduction in new regime
- Saved capital invested at 12% return
- Monthly savings (EMI - Rent) also invested
Note: New regime offers lower tax rates but no deductions for home loan interest, principal, or HRA.
Should You Buy a House or Rent in India?
This is one of the most important financial decisions you'll make. Our Rent vs Buy calculator helps you compare both options considering Indian tax laws, home loan benefits, and opportunity costs.
Factors This Calculator Considers
- Tax Regime: Old regime (with deductions) vs New regime (no deductions)
- Home Loan Tax Benefits: Section 24 (₹2L interest) + Section 80C (₹1.5L principal) - Old regime only
- HRA Tax Benefits: 50% of rent deductible in metro cities - Old regime only, if eligible
- Property Appreciation: How much your property value grows annually
- Rent Inflation: How much rent increases each year (typically 5-8%)
- Investment Returns: What you could earn by investing the down payment and monthly savings
- Maintenance Costs: Annual upkeep expenses (1-2% of property value)
- Upfront Costs: Stamp duty (5-7%) and registration (1-2%) charges
When Buying Makes Sense
- You plan to stay in the same city for 10+ years
- Property prices are expected to appreciate significantly
- Home loan rates are competitive (below 9%)
- You're in a higher tax bracket (20-30%) to maximize deductions
- Rent is high relative to EMI in your area
When Renting Makes Sense
- You need flexibility to relocate for career opportunities
- Property prices are very high (yield < 3%)
- You can invest saved capital at higher returns than property appreciation
- You're early in your career with uncertain income trajectory
- You prefer liquidity over real estate assets
Key Assumptions
Investment Returns: We assume 12% annual returns if you invest in equity mutual funds (historical average). Adjust based on your risk appetite.
Property Appreciation: Indian metro cities have seen 5-7% annual appreciation historically. Tier-2 cities may vary.
Rent Inflation: Typically 5-7% annually in growing cities like Bangalore, Pune, Hyderabad.
Important Considerations
- This calculator assumes you stay in the property for the full analysis period
- Selling costs (2-3% brokerage) not included in buy scenario
- Property taxes and society charges included in maintenance cost
- HRA benefit only applies in old tax regime and if you're a salaried employee receiving HRA
- Home loan tax benefits (Section 24 & 80C) only apply in old regime for self-occupied property
- New regime offers no deductions but has lower tax rates - choose based on your total income