Rent vs Buy Calculator India 2026
Compare the true 20-year cost of buying a home (EMI + stamp duty + maintenance + opportunity cost) vs renting (rent + invested down payment). Real numbers, no bias.
Buying details
Renting details
🏠 Total cost of buying over 20 years
| Down payment (own money) | ₹16.00 L |
| Home loan total (principal + interest) | ₹1.36 Cr |
| Interest cost alone | ₹71.74 L |
| Registration + stamp duty (~6%) | ₹4.80 L |
| Brokerage (buy side ~1%) | ₹80,000 |
| Maintenance over 20 years | ₹16.00 L |
| Property tax over 20 years | ₹3.60 L |
| Total cash out | ₹1.77 Cr |
| Property value in 20 years | ₹2.57 Cr |
| Net wealth from buying | ₹2.57 Cr |
📈 Renter's wealth over 20 years
| Total rent paid over 20 years | ₹1.37 Cr |
| Down payment invested at 12% | ₹1.54 Cr |
| Monthly savings invested | ₹1.06 Cr |
| Renter's total wealth | ₹2.61 Cr |
This assumes the renter actually investsthe down payment and monthly savings. Most renters don't — which is why buying often wins in practice even when the math favours renting.
Key variables that swing the decision
Rent vs Buy FAQ
Is buying always better than renting in India?
No — it depends on property appreciation rate, how long you stay, and whether you'd actually invest the down payment if renting. In Mumbai and Bangalore, the rent-to-price ratio is often 1.5–2%, meaning property yields are very low. If you can earn 12%+ by investing the down payment in equity funds, renting + investing often beats buying over 10–15 years. Buying wins clearly in tier-2 cities where appreciation is 7–10% and rents are rising fast.
What is the rent-to-price ratio and why does it matter?
Rent-to-price ratio = annual rent / property price × 100. Example: ₹25,000/month rent on ₹80L property = ₹3L/year ÷ ₹80L = 3.75% yield. If this yield is below your borrowing rate (8.75%), it's mathematically cheaper to rent and invest. Most expensive Indian cities have 1.5–3% yield — meaning owners 'earn' less from their property than it costs to borrow against it.
What costs do most people ignore when buying a home?
Stamp duty + registration (4–8% of property value — ₹4–6L on a ₹80L flat), brokerage (1% on buy side), annual maintenance (₹50,000–₹2L/year), property tax, society charges, painting and repairs every 5–7 years, and the opportunity cost of locking up the down payment. These hidden costs add 15–20% on top of the property price that most EMI calculators ignore.
For how long should I plan to stay if I buy?
Minimum 7 years — ideally 10+. Stamp duty + brokerage on buy and sell = 8–10% of property value. On ₹80L, that's ₹6–8L in transaction costs. For these to be worth paying, property appreciation needs enough time to compound. Buying and selling in under 5 years almost always loses money in real terms, especially in metros with low rental yields.
Is it smart to stretch EMI to buy a bigger house?
Only if EMI stays below 40% of take-home salary. Stretching beyond that creates financial stress — any income disruption (job loss, medical) can cascade into default. The conventional Indian wisdom of 'buy the biggest you can afford' ignores the opportunity cost of capital and the psychological burden of a stretched EMI for 20+ years.
Does renting waste money?
This is a myth. Renting provides housing — it's not 'wasted' any more than buying groceries is wasted. You're paying for shelter. The question is: what is the total cost of owning vs renting equivalent shelter? When you factor in interest, maintenance, stamp duty, and opportunity cost — renting often costs less, especially in expensive metros. The 'waste' framing is a real estate industry narrative.