A fair comparison
"Rent is dead money" is only half the story. A buyer also has money that doesn't come back: loan interest, stamp duty, registration and maintenance. A renter who invests the down payment, and any monthly difference between EMI and rent, can build real wealth too. This calculator follows both paths month by month and compares what each person owns at the end.
Buyer's wealth = home value − loan outstanding
Renter's wealth = invested down payment + stamp duty
+ monthly (EMI + maintenance − rent), compoundingWorked example
What tips the balance
- Price-to-rent ratio: this home costs 27 times its yearly rent. In many Indian metros, homes cost 30–40 times annual rent (rental yields of 2.5–3.5%), which often favours renting on pure numbers.
- Home price growth: the biggest unknown. Try 3%, 5% and 8% to see how sensitive the answer is.
- Discipline: renting only wins if the renter actually invests the difference every month.
- Time horizon: buying rarely wins over short periods because stamp duty and early interest are sunk costs.
What the numbers can't capture
Owning a home brings security, no forced moves and freedom to renovate. Renting brings flexibility to change cities or jobs and no large debt. Both are valid. Use the numbers to understand the financial cost of your choice, not to make it for you. If you decide to buy, check affordability with the loan eligibility and home loan EMI calculators.
Frequently asked questions
Is buying a house a good investment in India?
It depends on price growth, rental yield and how long you'll stay. With low rental yields in big cities, renting and investing often wins financially over 10–15 years, but results vary widely.
Does this include home loan tax benefits?
No. Under the old regime, interest and principal deductions would improve the buying case somewhat; under the new regime there's no benefit for a self-occupied home.
What if EMI is less than rent?
Then the renter's portfolio is drawn down each month to cover the extra rent, which the calculator handles automatically.