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About the Rent vs Buy Calculator
"Rent is money down the drain" is the most expensive cliché in Indian personal finance. Buying involves a down payment, stamp duty of 5–8%, and an EMI where the early years are almost entirely interest — money that is equally gone.
The honest comparison holds your cash flow constant: if you rent, you invest the down payment and the difference between the EMI and the rent. This calculator runs both paths over your actual holding period and reports which leaves you wealthier.
The formula
Both paths start from the same cash position, which is what makes the comparison fair.
Things worth knowing
Frequently asked questions
It depends on rental yield, holding period and appreciation. In metros where yields are 2–3%, renting and investing the difference often wins over a short horizon; over fifteen years or more, buying usually pulls ahead as rent inflates and the loan amortises.
Generally at least five to seven years. Below that, stamp duty, registration and brokerage of around 8–10% of the price are rarely recovered through appreciation.
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