Rent vs Buy Calculator
Not “which is better” — in which yearbuying overtakes renting, with your state's stamp duty, the EMI, maintenance, price and rent growth, and what the renter earns on the difference.
The reasoning behind every input is in buy vs rent: which saves more money. Education only — not advice.
The home, and the rent it would replace
Five numbers. Loan terms, growth rates and costs are set to sensible defaults below.
for a comparable home
stamp 6% + registration 1%, reg. capped at ₹30,000
5% base plus 1% metro cess in municipal corporation limits; 1% concession for women on the base.
Add detail — loan terms, growth rates, costs
post-tax, on what the renter saves
brokerage etc. when you sell
overrides the state figure
Net worth, buyer vs renter, over 15 years
Renting stays ahead for all 15 years
After 15 years the renter is ahead by ₹95.38 L
How this is worked out. Both start with the same cash and spend the same each month. The buyer's money goes into the home; the renter invests the down payment and every rupee the EMI exceeds the rent. Break-even is the year the buyer's net worth overtakes the renter's.
EMI
₹69,426
vs rent ₹30,000
Upfront cash
₹27.00 L
20% down + 7.0% duty
Year 15 net worth
₹1.70 Cr
renter ₹2.65 Cr
Net worth by year
Buyer: home equity after selling costs. Renter: the upfront cash and every month's difference, invested.
Year-by-year working
| Year | Buyer net worth | Renter net worth | Ahead |
|---|---|---|---|
| 1 | ₹24.49 L | ₹35.26 L | Rent ₹10.77 L |
| 2 | ₹31.37 L | ₹44.23 L | Rent ₹12.86 L |
| 3 | ₹38.66 L | ₹53.96 L | Rent ₹15.30 L |
| 4 | ₹46.38 L | ₹64.52 L | Rent ₹18.14 L |
| 5 | ₹54.57 L | ₹76.01 L | Rent ₹21.43 L |
| 6 | ₹63.26 L | ₹88.49 L | Rent ₹25.23 L |
| 7 | ₹72.47 L | ₹1.02 Cr | Rent ₹29.61 L |
| 8 | ₹82.25 L | ₹1.17 Cr | Rent ₹34.62 L |
| 9 | ₹92.62 L | ₹1.33 Cr | Rent ₹40.34 L |
| 10 | ₹1.04 Cr | ₹1.51 Cr | Rent ₹46.88 L |
| 11 | ₹1.15 Cr | ₹1.70 Cr | Rent ₹54.31 L |
| 12 | ₹1.28 Cr | ₹1.91 Cr | Rent ₹62.75 L |
| 13 | ₹1.41 Cr | ₹2.13 Cr | Rent ₹72.32 L |
| 14 | ₹1.55 Cr | ₹2.38 Cr | Rent ₹83.15 L |
| 15 | ₹1.70 Cr | ₹2.65 Cr | Rent ₹95.38 L |
Rent vs buy
Renting stays ahead for all 15 years
₹1.00 Cr home, 20% down, vs ₹30,000 rent · 15 years
- EMI
- ₹69,426
- Upfront cash
- ₹27.00 L
- Buyer, year 15
- ₹1.70 Cr
- Renter, year 15
- ₹2.65 Cr
Price growth 5% · rent growth 5% · return 10% · estimate, not advice · jpvfin.com
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The answer is a year, not a verdict. It moves most with price growth and the return the renter actually earns on the difference — drag those two in “Add detail” before believing it. The reasoning behind each input is in buy vs rent: which saves more; the EMI itself is worked in the EMI and prepayment calculator.
Estimate only. Equal-cash-flow comparison: the renter invests the buyer's upfront outlay and each month's difference between owning and renting. Stamp duty and registration are indicative state figures as of July 2026 and change without notice; excludes GST on under-construction property, society deposits, interiors, and any tax benefit on the loan. Not a recommendation to buy or rent.
An equal-cash-flow comparison
Two people with identical money. One buys: pays the down payment and duty, then EMI, maintenance and property tax. The other rents the same home and invests everything the buyer spends that they do not — the upfront cash, and each month's gap. Net worth is compared every year. That is the only fair way to compare, and it is why the renter starts ahead.
Two inputs decide it
Price growth and the renter's investment return. At 5% growth and 10% return, buying a ₹1 crore Mumbai flat on a 20% down payment does not catch up in 15 years; at 8% growth it does in year 7. Rental yield in most Indian cities is 2–3.5%, which is the structural reason renting is competitive.
Stamp duty is the hidden year
Six to eight percent of the price, paid once, never recovered, before the buyer has any equity. On ₹1 crore that is ₹6–8 lakh of net worth gone on day one — roughly a year of price growth just to get back to zero. The state table is dated July 2026 and editable.
What the year does not tell you
- Whether you will actually stay that long — most break-evens assume you do.
- Whether the renter actually invests the difference, or spends it.
- Stability, schools, and not being asked to leave — real, but not in rupees.
- Leverage cuts both ways: a 20% down payment turns a 10% price fall into a 50% equity loss.
Frequently asked questions
Is it better to rent or buy a home in India?+
It depends on how long you stay, how fast prices and rents grow, and what you earn on money you do not sink into a down payment. The calculator does not answer yes or no; it finds the year buying overtakes renting on net worth — and in a city where rental yield is around 3% and prices grow 5% a year, that year often does not arrive within 15 years, while at 8% price growth it arrives in under 10.
What does the break-even year mean?+
The first year in which the buyer's net worth (home value after selling costs, minus the loan outstanding) is at least the renter's (the down payment and duty invested, plus every month's difference between owning costs and rent, compounded). Before that year the renter is richer; after it the buyer is, as long as the assumptions hold.
Why does the renter's line start higher?+
Because the buyer spends the down payment, stamp duty and registration on day one and immediately loses the selling cost on paper, while the renter still has that money invested. Buying starts behind and has to catch up through price growth and loan paydown.
Which inputs matter most?+
Price growth and the renter's investment return, by a wide margin. A point either way moves the break-even by years. Rent growth and the loan rate matter next; maintenance and property tax are small. Test the two big ones in 'Add detail' before trusting the year.
Are stamp duty and registration included?+
Yes, from a state table (indicative, dated) with the women's concession where a state offers one, and both are editable. They are paid once and never recovered, which is a large part of why buying starts behind. GST on under-construction property, society deposits and interiors are not included.
Does this include the tax benefit on the home loan?+
No. Section 24(b) and 80C benefits apply only in the old regime, only up to caps, and only if you would otherwise have paid that tax. Including them would flatter buying for everyone on the new regime. If you claim them, the EMI calculator's 24(b) toggle shows their effect on the loan itself.
Sources and references
- State stamp duty and registration charges, indicative as of 10 July 2026: squareyards.com, cleartax.in. Indicative. States revise rates annually and sometimes mid-year, and several charge a city cess or transfer duty on top of the base. Every figure here is editable in the calculator; confirm on the state's IGR / Stamps and Registration portal before an appointment.
- EMI on the standard monthly-reducing formula used by Indian banks; see the EMI calculator for the schedule.
Disclaimer: Educational only; not a recommendation to buy or rent. Results depend entirely on the growth and return assumptions you set. Excludes GST on under-construction property, society deposits, interiors, loan tax benefits, and the non-financial value of owning.
Related: EMI & prepayment · Land vs house vs apartment