How does this calculator decide?

It compares the net cost of buying (down payment + EMIs − the equity/appreciation you build) against the total rent paid over the same horizon, including annual rent increases.

What factors does it not capture?

It simplifies tax benefits, maintenance, opportunity cost of the down payment, and transaction costs. Treat the result as directional, not absolute.

Free Tool

Rent vs Buy Calculator

See whether renting or buying works out cheaper over your time horizon, accounting for EMIs, appreciation and rent growth.

Property Price₹80.0 Lakh

Down Payment₹16.0 Lakh

Interest Rate8.50%

Loan Tenure20 years

Monthly Rent (equivalent home)₹25,000

Annual Rent Increase7%

Annual Appreciation6%

Comparison Horizon10 years

Recommendation

Buy

Over a 10-year horizon

Net cost of buying₹-15.8 Lakh

Total rent paid₹41.4 Lakh

Property value at horizon₹1.43 Cr

You save by buying₹57.3 Lakh

✅ Buying is cheaper over this horizon, mainly due to equity and appreciation.

Rent vs Buy FAQ

It depends on how long you'll stay, the price-to-rent ratio, and expected appreciation. Buying usually wins over long horizons (7+ years) in appreciating markets; renting can win if you move often or prices are stretched.

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Important disclaimer: Results are indicative only and provided for informational purposes. They do not constitute financial, legal or investment advice. A simplified model. It excludes tax benefits, maintenance, brokerage and the opportunity cost of your down payment. Actual figures may vary based on lender policies, government rates and individual circumstances. Always consult a qualified advisor before any financial commitment. Data accurate as of May 2026. Read full disclaimer.