Buy vs Rent Calculator India
Compare total cost of buying versus renting over your chosen time horizon.
Frequently Asked Questions
Is it better to buy or rent a house in India?
It depends on your city, tenure, and investment outlook. In high price-to-rent ratio cities like Mumbai, renting can be more economical short-term. In Tier 2 cities, buying typically makes more financial sense.
What costs are excluded from this calculator?
Stamp duty and registration (5–7%), maintenance, property tax, insurance, broker fees, and the opportunity cost of the down payment are not included. Add 15–20% to the buy cost for a more conservative estimate.
What is a good price-to-rent ratio?
Below 20 generally favours buying; above 25 often favours renting short-to-medium term. Mumbai and Bengaluru commonly see ratios of 30+, while Hyderabad and Pune are closer to 20.
How to use this calculator
Enter the property price, down payment, loan rate, and your current rent. Add an estimated property appreciation rate and annual rent increase to make the comparison realistic over your time horizon.
Rule of thumb: a price-to-rent ratio below 20 generally favours buying; above 25, renting tends to be more economical. Mumbai and Bengaluru often exceed 30, making renting cheaper in the short to medium term.