Should you rent or buy a house in India? Stop guessing and use data. Our Rent vs Buy Calculator compares the total cost of renting vs buying over 5 to 30 years — factoring in EMI payments, property appreciation, rent increases, tax benefits, and opportunity cost of your down payment.
In many Indian cities, renting is actually cheaper than buying when you factor in EMI interest, maintenance, and the opportunity cost of locking your down payment. But in some markets, buying wins long-term. This calculator gives you the definitive answer for YOUR numbers.
How to Use This Calculator
- Enter property price, down payment, and home loan rate.
- Enter your current monthly rent and expected annual rent increase.
- Set the comparison period (5-30 years).
- Click “Compare” to see which option costs less over time.
Frequently Asked Questions
Is it better to rent or buy in India in 2025?
It depends on your city, property prices, and rent levels. A good rule of thumb: if the property price is more than 20× annual rent, renting is likely better financially. In cities like Mumbai and Bangalore where price-to-rent ratios are 25-35×, renting often wins. Use our calculator with your specific numbers.
What is opportunity cost in rent vs buy?
When you buy, your down payment (say ₹20-30 lakh) is locked in the property. If you rented instead, that money could be invested in mutual funds earning 10-12% annually. This “missed return” is the opportunity cost. Our calculator factors this in.
What about tax benefits on home loan?
Home loan offers tax deduction on interest (up to ₹2 lakh under Section 24b) and principal repayment (up to ₹1.5 lakh under Section 80C). However, the New Tax Regime doesn’t allow most deductions. Our calculator shows the net cost after tax benefits.