Reference 1
- Market condition
- Low rent, high prices
- Rent yield
- 2% to 3%
- Appreciation
- Moderate
- Often favours
- Renting
वित्त
Rent vs Buy Calculator
Compare renting versus buying a home in India using loan EMI, rent escalation, property appreciation, maintenance, and investment returns.
सूत्र व्याख्या
Buy wealth = property value - remaining loan - ownership costs; Rent wealth = invested down payment + invested monthly savingsThis model compares the wealth created by owning a property against investing the down payment and monthly savings while renting a similar home.
Step-by-Step Example
- 1Calculate home loan amount from property price and down payment.
- 2Estimate EMI over the selected analysis horizon.
- 3Grow property value with appreciation and subtract maintenance, property tax, and remaining loan.
- 4Grow the renter's invested capital and monthly surplus at the expected investment return, then compare both outcomes.
Reference
Benchmark Table
Compare common scenarios quickly. Scroll horizontally on smaller screens.
Reference 2
- Market condition
- Strong appreciation
- Rent yield
- 3% to 4%
- Appreciation
- 7%+
- Often favours
- Buying
Reference 3
- Market condition
- Short stay
- Rent yield
- Any
- Appreciation
- Uncertain
- Often favours
- Renting
Reference 4
- Market condition
- Long stay with stable job
- Rent yield
- 3%+
- Appreciation
- 6%+
- Often favours
- Buying
प्रायः सोधिने प्रश्नहरू
The gap between EMI and rent, property appreciation, and return on invested savings usually drives the result.
The model focuses on recurring ownership economics. Add stamp duty and registration to property price for a more conservative result.
If rent is much lower than EMI, the saved down payment and monthly surplus can compound into a large investment corpus.
Not always. Buying wins when appreciation, stability, and usable ownership value exceed loan interest, taxes, maintenance, and opportunity cost.
Renting advantage
Renting is better by ₹60,66,857.05