How to use this calculator
- Enter the house price, down payment, loan rate and tenure.
- Enter the rent for a similar house and how much it goes up each year.
- Set the return you could earn by investing, and how long you will stay.
Both sides spend the same money each month: whoever pays less for the house that month invests the difference.
Frequently asked questions
Is it better to rent or buy a house in India?
It depends on how long you stay and how fast prices and rents rise. In the example — a ₹80 lakh house, or ₹22,000 rent a month — after 15 years renting leaves you richer by ₹48.94 lakh.
Why does rent often look cheaper than an EMI?
A year of rent is often a small part of the house value — 3.3% in the example — while the home loan costs 8.5% a year. Buying pays off only when the house value rises well and you stay long enough.
What if I may move in a few years?
Buying for a short stay rarely pays, because stamp duty and brokerage eat into the gain. Over 5 years in the example, renting is ahead by ₹13.27 lakh.
What if house prices rise slower?
At 4% a year instead of 6%, after 15 years renting is ahead by ₹92.5 lakh.
Does the tax benefit on a home loan change the answer?
This calculator works before tax. Home loan deductions are available only under the old tax regime, so check that you can use them before counting on them.