Rent vs Buy Calculator — India
Should you buy a home or keep renting and invest the difference? India's brutal stamp duty (5-8%), low rental yields (2-3%), and high equity returns make this a genuinely hard question. This calculator models both paths month by month.
Renting wins by
₹1.6Cr
Rental
Rental yield: 3.2%
Growth assumptions
Tax benefits (old regime)
Section 24(b) — interest deduction
Up to ₹2L/year on home loan interest
Transaction & ownership costs
Renting wins by
₹1,59,33,651
Renting + investing is better
Buy wealth
₹1,28,98,118
After 15 years
Rent wealth
₹2,88,31,769
After 15 years
Monthly EMI
₹52,069
Break-even year
N/A
Wealth over time
Buy breakdown
Rent + invest breakdown
Upfront costs of buying
Total cost of ownership
Section 24(b) saves you ₹9,00,000
Home loan interest deduction (up to ₹2L/year) at 30% tax bracket reduces your effective cost of borrowing. This benefit is only available under the old tax regime.
Renting is better by ₹1,59,33,651 over 15 years. If you rented and invested, you'd have ₹2,88,31,769, compared to ₹1,28,98,118 from selling after 15 years.
Note: This calculator models a simplified comparison. It does not account for Section 80C principal deduction (shared ₹1.5L limit), rental income tax if letting, Section 54 capital gains exemption on reinvestment, GST on under-construction property, or LTCG tax on equity MF gains. Investment returns are not guaranteed. Stamp duty varies by state and gender. Consult a financial advisor for personalised advice.