Buy vs Rent Calculator
Should you buy a home or keep renting? Compare the true total cost of buying vs renting with stamp duty, tax benefits, opportunity cost, and 20+ year projections.
Configure Scenario
EMI = P × r × (1+r)n / ((1+r)n - 1) | Includes stamp duty, tax benefits (Sec 80C & 24b), and opportunity cost of down payment
🏠 Buying Summary
💰 Renting Summary
🎯 Breakeven Analysis
🔬 Sensitivity Analysis
📅 Year-by-Year Comparison
| Year | EMI/mo | Rent/mo | Property Val. | Invest. Corpus | Net Buy | Net Rent | Winner |
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Understanding Buy vs Rent
Buy vs Rent Decision Factors
The decision to buy or rent depends on many factors: how long you plan to stay, local property prices, rental yields, your investment discipline, tax benefits, and lifestyle flexibility. A high price-to-rent ratio (>20) often favors renting, while a low ratio (<15) may favor buying. Your personal financial goals and risk appetite also play a crucial role.
Hidden Costs of Buying
Buying a home involves many hidden costs beyond the property price: stamp duty (5-8%), registration charges, maintenance fees, property tax, home insurance, interior work, and repairs. The opportunity cost of the large down payment is often overlooked—that money could compound significantly in equity markets over 15-20 years.
Power of Investing the Difference
When you rent, the difference between your would-be EMI and actual rent can be invested in equity mutual funds or index funds. With 12-15% annual returns, this investment can compound dramatically over 15-20 years. The key is discipline—you must actually invest the savings consistently, not spend them. This “rent and invest” strategy can often outperform buying in high price-to-rent ratio cities.