Rent vs Buy Calculator

The age-old question — should you rent or buy a home? Get a clear, data-driven answer based on your specific numbers.

Property Price₹60,00,000
Monthly Rent₹20,000
Home Loan Rate8.5%
Years You'll Stay10 Years
Recommendation
BUYING is better
You save ₹12L by buying over 10 years
Ready to buy your home?Check Home Loan Eligibility →
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Rent vs Buy

How to Decide: Rent or Buy?

The rent vs buy decision depends on multiple factors — property price, rent, loan interest rate, how long you'll stay, and property appreciation. Our calculator factors in all costs including EMI, property appreciation, and the opportunity cost of your down payment to give you a clear answer.

🏠 Buying Wins When

You plan to stay 7+ years, rent is high relative to property price, and you value stability and ownership. Property also builds long-term wealth.

🔑 Renting Wins When

You may relocate soon, rent is low relative to property price, or you can invest the down payment for higher returns than property appreciation.

📊 Rent-to-Price Ratio

If annual rent is less than 3% of property price, renting is usually better. Above 4-5%, buying typically makes more financial sense.

💡 Beyond Money

Buying offers emotional security and freedom to modify your home. Renting offers flexibility and freedom from maintenance costs and property taxes.

FAQ

Rent vs Buy — Common Questions

Is it better to rent or buy in India?+
It depends on how long you'll stay. If you plan to live in one place for 7+ years, buying usually wins financially. For shorter stays, renting is often better. Use our calculator for your specific numbers.
What is a good rent-to-price ratio?+
If annual rent is below 3% of property price, renting is financially smarter. For example, if a ₹60 lakh home rents for ₹20,000/month (₹2.4 lakh/year = 4%), buying may be better.
Should I buy a house in my 20s?+
Only if you're settled in a city long-term. In your 20s, career mobility matters more. Renting keeps you flexible. But if you're settled, early buying builds equity sooner.