Rent vs Buy Calculator India
2026

It compares two 20-year scenarios. Scenario A: you buy a property with a home loan (EMI + maintenance + property tax + stamp duty + opportunity cost of down payment). Scenario B: you rent the same property and invest the monthly surplus (EMI minus rent) plus the down payment in equity mutual funds. After the chosen period, it compares your net wealth in both scenarios — property value vs investment corpus minus total rent paid.

Price-to-rent ratio = property price divided by annual rent. Below 15: buying is cheaper. 15-20: neutral. Above 20: renting wins financially. Indian metros are all above 20 — Mumbai (33-35), Delhi NCR (28-30), Bangalore (25-27), Hyderabad (22-24), Pune (22-24), Chennai (24-26). When this ratio exceeds 25, the market is pricing in speculative appreciation, not rental income.

NHB RESIDEX data shows national average residential appreciation of 5-7% CAGR over the past 15 years. Mumbai was flat from 2014 to 2021. Delhi NCR crashed 20-30% from 2013 peaks. Tier 2 cities like Jaipur and Lucknow averaged 4-6%. The 10-12% figure people quote includes the pre-2013 boom. Post-RERA, post-demonetization, realistic residential appreciation is 5-7% CAGR. Our calculator defaults to 6%.

Stamp duty (3-7% by state), registration charges (1%), society maintenance (Rs 2-10 per sq ft/month = Rs 3,000-15,000/month for a 1,000 sq ft flat), property tax (Rs 20,000-1,25,000/year depending on city), home insurance (Rs 5,000-18,000/year), interior and renovation costs, and the opportunity cost of the down payment locked in an illiquid asset. Total hidden costs add 20-30% to the advertised price over the ownership period.

This is the biggest risk. If you invest only 50% of the surplus, your 20-year corpus drops roughly in half — but still often matches or beats property value. At 30% discipline, property usually wins. The break-even discipline rate is approximately 45-50%. Automate SIPs on salary day to remove the behavioural variable. Our calculator lets you adjust the investment discipline percentage to model this.

Under the new tax regime (used by 75%+ of taxpayers), there is zero deduction for home loan interest on self-occupied property. Under the old regime, you get Rs 2 lakh interest deduction (Section 24b) and Rs 1.5 lakh principal deduction (Section 80C), saving up to Rs 1.05 lakh/year at the 30% slab. However, renters in the old regime can claim HRA exemption — up to 50% of basic salary in metros. Our calculator factors in both scenarios.

Security deposit: 2-3 months rent in most cities but 6-10 months in Bangalore (Rs 1.5-2.5 lakh for Rs 25,000/month rent). Annual rent escalation of 5-8% means Rs 25,000 rent becomes Rs 67,275 after 20 years at 5% escalation. Broker fee of 1-2 months rent applies every 3-4 years. Relocation costs Rs 15,000-40,000 per move. Total hidden cost over 20 years: Rs 10-15 lakh in deposits, broker fees, and moving costs.

Buying wins when four conditions align: (1) Price-to-annual-income ratio below 5 (property costs less than 5x your annual income). (2) EMI below 35% of take-home pay. (3) You plan to stay 10+ years in the same city and locality. (4) Price-to-rent ratio in your area is below 20. This typically happens in Tier 2 cities like Jaipur, Lucknow, Indore, Coimbatore where a Rs 50-60 lakh flat rents for Rs 18,000-22,000/month.

To keep EMI below 40% of take-home: minimum Rs 40-50 lakh annual CTC. At Rs 40 lakh CTC, take-home is approximately Rs 2.6 lakh/month (new regime). 40% = Rs 1.04 lakh, which just covers the Rs 86,782 EMI on Rs 80 lakh loan at 8.5% for 20 years. Banks approve up to 50-60% of net income as EMI, but crossing 40% leaves dangerously little for other expenses, emergencies, and investments.

Maharashtra: 5-6% (women same rate in some areas). Karnataka: 5.6%. Delhi: 6% (women 4%). Tamil Nadu: 7%. Gujarat: 4.9%. Telangana: 5-7.5%. Uttar Pradesh: 7% (women 6%). Rajasthan: 5-6%. Punjab: 6% (women 3%). Goa: 3.5%. Registration charges are typically 1% extra. Women buyers get 1-3% concession in most states. This calculator lets you input your state-specific rate.

That is a personal decision this calculator cannot answer. What it can show: the exact rupee cost of that emotional benefit. If buying costs Rs 3.3 Cr more over 20 years (opportunity cost), you are paying Rs 13,750/month for the stability and pride of ownership. For some families, that is worth every rupee. For others, that Rs 3.3 Cr difference funds retirement, education, or a better lifestyle. Know the number, then decide with clarity.

EMI stays constant for the full loan tenure (assuming floating rate stays flat — which it does not, but is the standard simplification). Rent increases annually by the escalation rate you set (default 5%). After 15-20 years, rent can exceed EMI. The calculator models this crossover point and still shows renting winning in most metro scenarios because the early-year surplus compounds aggressively. The graph shows exactly when rent surpasses EMI.