Rent vs Buy Calculator
Compare renting vs buying with SIP opportunity cost, stamp duty, home loan tax benefits (Sec 24b + 80C), and long-term wealth projections.
Calculator Parameters
Setup property and financial options to compare renting vs buying.
City & Property
Quick Rent Presets
Quick Property Presets
Stay Duration Presets
Loan & Stay
Growth Rates
Economic Presets
Presets auto-adjust Rent Inflation, Property Appreciation & SIP return sliders.
One-Time Costs (India)
Recurring Ownership Costs
Tax Benefit Integration
Section 24b allows interest deduction up to ₹2L/year. Section 80C allows principal deductions up to ₹1.5L/year (Old regime only).
Verdict Language
Summary & Projections
Calculated wealth comparison and detailed cost breakdown.
🏠 Net Buy Cost
₹0
🔑 Total Rent Cost
₹0
💳 Monthly Ownership
₹0
📈 Renter SIP Corpus
₹0
Net Worth Progression
Compare Property Equity vs Renter's SIP investment over 20 years.
Buy Cost Breakdown
Visual composition of total outgo if you buy property.
📅 Year-by-Year Wealth Progression Snapshot
Track total rent paid, buyer equity, and renter SIP corpus each year — see exactly when buying becomes more profitable than renting.
| Year | Rent Paid | Buyer Equity | SIP Corpus | Better |
|---|
😊 Beyond the Numbers — Quality of Life
Financial metrics don't capture everything. Renting and buying both shape your lifestyle, freedom, and long-term peace of mind.
Renting Benefits & Limits
- ✅No long-term debt liability — full financial freedom
- ✅Freedom to relocate for career or life opportunities
- ✅Lower monthly outflow — invest the difference in SIP
- ✅No property maintenance responsibility
- ❌Landlord dependency — rent hikes, eviction risk
- ❌Zero equity at end — no asset building
- ❌Cannot renovate or personalize freely
Buying Benefits & Limits
- ✅Your own home — no landlord, full control
- ✅Emotional stability and security for your family
- ✅Tangible asset — builds equity and net worth
- ✅Freedom to renovate and personalize completely
- ❌Long-term EMI commitment — financial lock-in
- ❌Property maintenance is your responsibility
- ❌Less flexibility to move for job opportunities
How to Use & Pro Tips
Enter Basic Values
Fill in Property Price, Down Payment (%), Rent, and Tenure using synced sliders.
Configure Sliders
Adjust Rent Inflation, Property Appreciation, and SIP Returns dynamically.
Advanced Settings
Expand advanced options to customize one-time charges, recurring fees, and tax benefits.
PDF or Link Share
Download a PDF report, copy summary to clipboard, or share calculation link.
PRO TIP: Down Payment Opportunity Cost!
Ghar kharidte waqt jo down payment aur one-time stamp duty aap lock karte hain, agar aap rent par reh kar us paise ko ek index ya diversified mutual fund SIP me 12% returns par invest karein, toh 15-20 saal me wo compound hokar ek massive wealth corpus build kar sakta hai. Is Opportunity Cost ko consider karke hi decision lein!
Important Details & Why We Are Best
Crucial Real Estate Factors
- Stamp Duty & Registration: India ke lagbhag saare states me property cost ka 5% to 7% Stamp Duty aur 1% Registration charge lagta hai, jo purchase cost ka ahem hissa hota hai.
- Maintenance Costs: Society maintenance and repairs are major hidden monthly expenses. Society maintenance grows exponentially over time.
- Rent Escalation: India me rent typically har saal 5% to 10% escalate hota hai. Is inflation ko calculator dynamically simulate karta hai.
- SIP Returns: SIP calculations assume regular equity mutual fund return benchmarks, providing a realistic long-term comparison baseline.
Why Our Tool is the Best Choice
- Real-time Opportunity Cost: Down payment and hidden charges are dynamically grown in SIP to compute accurate comparative net worths.
- Sec 24b & 80C Tax Tracker: Tax benefits under Section 24b (interest deduction) and Section 80C (principal deduction) are computed slab-wise and subtracted from Buy cost.
- High Fidelity Vector PDF: Download full, beautifully designed summary reports including charts and a year-by-year schedule preview.
- City Tier Presets: Pre-programmed defaults for Tier 1 and Tier 2 cities help run scenarios instantly without typing details.
- Share URL Params: Easily share calculations. All sliders and choices are encoded safely as short URL params.
Buying vs Renting: The Ultimate Decision Guide
Smart Buying & Loan Rules
- The 3/20/30 Loan Guideline: Home loan should follow a safe ratio. Try to make at least a 20% down payment, limit your monthly EMIs to 30% of your take-home pay, and opt for a maximum 20-year tenure to keep interest under check.
- The 4% Rental Yield Rule: Rental yield is calculated as (Annual Rent / Property Value) * 100. If rental yield in your neighborhood is under 3%, renting is financially superior. If it is above 4.5%, buying is highly profitable.
- The 5-Year Horizon Rule: Buying incur heavy sunk costs (stamp duty, registry, brokerage). If you do not plan to stay in the same property for more than 5 years, renting is almost always cheaper than buying.
Hidden Cost Checklist
- Upfront Acquisition Charges: Budget an extra 8% to 12% of property cost for stamp duty (5-7%), registration (1%), legal fees, builder agreement charges, and brokerage.
- Society Maintenance Fees: Apartment maintenance charges (usually ₹2 to ₹6 per sq.ft.) are permanent monthly outflows that grow annually with inflation, separate from your EMI.
- Recurring Costs: Property tax, building insurance premiums, periodic house repairs, painting, and interior fit-out depreciation are fully sunk costs that buyers must bear.
Growth & Liquidity Comparison
- Leverage Risk vs SIP Returns: Buying allows leverage (purchasing a ₹1Cr home with ₹20L DP). While this boosts equity if values double, long-term Tier-1 property growth in India averages ~5-7%, whereas equity SIPs historically yield 12-15%.
- Exit Barriers and Fees: Mutual funds can be sold online in 2 clicks. Real estate deals take 6-12 months of hard negotiations and carry exit costs like 1-2% brokerage and capital gains tax.
- Diversification Factor: Renting + investing in SIP spreads your wealth across hundreds of top companies globally. Buying concentrates 70-90% of your net worth into a single illiquid pin code.