Rent vs Buy Calculator for India
Quick answer
See whether buying a home or renting and investing the difference leaves you wealthier over your chosen horizon.
Enter your city, property price, loan details, and current rent. The calculator compares net wealth on both sides — including EMI, down payment opportunity cost, property appreciation, and investment growth.
How to use this calculator
- 1Enter your current rent and the property price you are considering.
- 2Set your down payment percentage and expected home loan interest rate.
- 3Add the property appreciation rate for your city.
- 4Choose an investment return assumption for the rent + invest scenario.
- 5Set your time horizon and tax regime, then review the net wealth comparison.
Factors that affect this calculation
EMI vs rent ratio
If your EMI is more than 1.5× your current rent, the monthly cash flow strongly favours renting. That difference, invested consistently, can compound significantly over 15–20 years.
Property appreciation rate
Long-term residential appreciation in most Indian cities ranges from 4–6% CAGR. Using an inflated assumption tips the calculation unfairly toward buying.
Down payment opportunity cost
The down payment you deploy into property could alternatively stay invested in equity or FDs. This calculator models that alternative growth on the renting side.
Time horizon
Buying typically needs 10+ years to overcome the early interest burden and transaction costs. Shorter horizons almost always favour renting.
Frequently asked questions
Should I buy a house or rent and invest in India in 2026?
There is no universal answer. It depends on your city, property price, loan terms, and how long you plan to stay. In many Indian metros, if EMI is more than 1.5× equivalent rent, renting and investing the difference can produce higher net wealth over 15 to 20 years.
Is property a good investment in India compared to mutual funds?
Over the last 20 years, Nifty 50 TRI has returned about 13% CAGR. Residential property in many Indian cities has appreciated around 4 to 6% CAGR over similar periods, excluding rental income.
What property appreciation rate should I use?
For metros like Mumbai, Bengaluru, Hyderabad, and Chennai, 5 to 6% is a practical long-term assumption. For many Tier 2 cities, 3 to 5% is more realistic.
Which tax regime does the calculator use?
The calculator models Section 24 and 80C benefits under the old regime. Switch to New Regime in the tax section to remove those deductions if you are on the new regime.
Does prepaying my home loan change the rent vs buy calculation?
Yes. Part-prepayments reduce interest burden and tenure, improving the buying side. Use Kedil's Prepay vs Invest calculator for that decision directly.
Assumptions
Property appreciation
Applied annually to the purchase price. Rental income is not modelled — this is a net-wealth comparison, not a yield analysis.
Investment growth
Down payment and monthly rent savings (EMI minus rent) are compounded at the chosen investment return rate on the renting side.
Loan
Reducing balance EMI method. Stamp duty and registration costs are added to the upfront outlay on the buying side.
Limits
Tax rate changes, rent revisions, property liquidity, brokerage, maintenance surprises, and market volatility are not fully modelled.
This is an educational calculator, not financial advice. Property and investment decisions depend on personal circumstances. Consult a SEBI-registered financial advisor before making any major financial decision.