Compare EMI vs rent, property appreciation, opportunity cost and tax benefit to find your break-even year
Property & Loan
₹
20%
9%
20 yrs
Rent & Assumptions
₹
5%
7%
12%
10 yrs
Tax Benefit
Enter property price and monthly rent to see your rent vs buy analysis.
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₹0
Net advantage
🏠 Cost of Buying
Total EMI Paid₹0
Down Payment Opportunity Cost₹0
Maintenance (0.5% p.a.)₹0
Stamp Duty + Registration (6%)₹0
− Tax Benefit (Sec 24b)−₹0
− Appreciation Gained−₹0
Net Cost of Buying₹0
💰 Cost of Renting
Total Rent Paid₹0
− Investment Gain on Down Payment−₹0
Net Cost of Renting₹0
📌 Formula Used
Monthly EMI = P × r × (1+r)^n / [(1+r)^n − 1]
Annual Rent Cost = Monthly Rent × 12 × (1 + Rent Increase)^year
Property Value at Year N = Purchase Price × (1 + Appreciation)^N
Opportunity Cost = Down Payment × (1 + Investment Return)^N
Break-even = Year when [Net Cost of Buying] < [Net Cost of Renting]
P = loan principal, r = monthly interest rate (annual rate ÷ 12), n = number of monthly instalments. Net cost of buying nets out property appreciation and tax benefit; net cost of renting nets out the investment gain on the down payment.
Cumulative Net Cost — Buying vs Renting
Net cost of buying
Net cost of renting
Sensitivity — Verdict at Different Appreciation Rates
Appreciation
Break-even Year
Cheaper at Horizon
ⓘ Projections are estimates based on the assumptions you entered — actual outcomes vary with market conditions, interest rate changes, rent trends, and property-specific factors.
★ Premium Rent vs Buy Report — ₹99
Verdict
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Break-even Year
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Net Cost of Buying
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Net Cost of Renting
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Full inputs, assumptions and year-by-year net cost comparison
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Frequently Asked Questions
Is it better to rent or buy a house in India? +
It depends on how long you plan to stay, local price-to-rent ratios, and what else you'd do with the down payment. Buying builds equity and locks in housing cost against future rent inflation, but ties up capital in stamp duty, maintenance, and loan interest. Renting keeps you flexible and lets you invest the down payment elsewhere, often with higher liquidity. As a rule of thumb, if you plan to stay in one city for 7+ years and can comfortably afford the EMI, buying usually wins. For shorter horizons, or if attractive investment returns are available, renting can be financially better. Use the calculator above with your own numbers to check.
How do I calculate if buying a home is worth it? +
Compare the total cost of buying — EMI paid, maintenance, stamp duty, and the opportunity cost of your down payment — against the total cost of renting, which is rent paid minus the returns you'd earn by investing that down payment instead. Subtract the value your property gains through appreciation and any Section 24(b) tax benefit from the buying side. If the net cost of buying is lower than the net cost of renting at your chosen time horizon, buying is the better financial choice. This calculator automates that comparison and shows you the exact break-even year.
What is the break-even point for buying vs renting? +
The break-even point is the year at which the cumulative net cost of buying drops below the cumulative net cost of renting. In the early years, buying usually costs more because of stamp duty, registration, and high interest outgo on a fresh loan. As the loan matures, EMIs stay fixed while rent keeps rising with inflation, and property appreciation adds to your net worth — eventually making buying cheaper. Typical break-even points in Indian metros range from 5 to 12 years, depending on the down payment, home loan rate, rent inflation, and property appreciation you assume.
Does the home loan tax benefit make buying more attractive? +
Yes. Under Section 24(b) of the Income Tax Act, you can claim a deduction of up to ₹2 lakh per year on home loan interest paid (old tax regime, self-occupied property), which lowers your effective cost of borrowing. For a borrower in the 30% tax slab, this deduction can save up to ₹60,000 a year, effectively reducing the real interest rate on the loan. This calculator lets you toggle the Section 24(b) benefit on or off and pick your tax slab so you can see exactly how much it improves the case for buying versus renting.