Rent vs buy: which costs less?
Buying costs you the EMIs, maintenance and purchase costs, minus the equity you own at the end. Renting costs you the rent, minus what you earn by investing the down payment and any monthly saving. The answer depends mostly on how long you stay, price growth and the return on your investments, so try several values.
Rent vs buy calculator
All starting values are examples; replace them with your own. The calculation ignores income tax benefits, selling costs and the risk of each option.
How the comparison works
For each month we add the buyer's EMI and maintenance, and the renter's rent. The renter invests the down payment and purchase costs from day one, and also invests the difference whenever the buyer's monthly outgo is higher than the rent. At the end, the buyer's net cost is everything paid minus the home's value less the loan still owed; the renter's net cost is the rent paid minus the investment gains.
For a reference point on recent price trends, see RBI's house price index.
Frequently asked questions
Is it better to rent or buy a house in India?
It depends on your numbers. Buying tends to win when you stay many years and prices rise faster than rent and investment returns; renting tends to win over short stays or when the price is high relative to rent.
What matters most in the rent vs buy decision?
How long you stay, the price-to-rent ratio, the loan rate, home price growth and what your savings would earn if invested instead.
Does this include tax benefits on a home loan?
No. Tax rules depend on the tax regime you choose, so the calculator leaves them out.
These calculators use only the numbers you enter; the starting values are examples, not offers or forecasts. Lenders set the actual rate, tenure, eligibility and fees. Information only, not financial advice.