Clarity. Before you commit.
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Home Loan
Rent vs Buy

Start with your city

Indicative defaults based on typical market conditions. Adjust any input below to match your actual situation.

Custom mode — all inputs at defaults. Select a city above to pre-populate typical assumptions.

Property details

Property price
Down payment

Stamp duty + registration

Annual property appreciation
Annual maintenance (% of value)

Covers maintenance charges, property tax, upkeep. Typical range: 0.5–1.5% per year.

Home loan

Loan interest rate
Loan tenure

If you rent instead

Current monthly rent

Annual rent increase

Typical Indian lease renewals: 5–10% annual increase. Urban metros tend toward the higher end.

Returns & analysis period

Expected investment return (p.a.)

Return on the down payment + monthly surplus if invested. Use 6–8% for debt, 10–12% for equity, 4–5% for FD.

Analyse over

Tax profile

Tax regime
New regime: Sec 24(b) deduction unavailable. The home loan interest provides no tax benefit, increasing the effective cost of buying.
Your marginal tax slab
Sec 24(b): ₹2L interest deductible/year. Sec 80C: principal repayment up to ₹1.5L. Both reduce the effective monthly cost of buying.

Results

Monthly EMI
Effective monthly cost of buying
Initial capital deployed
Loan-free from
year of ownership

Wealth position at Year 20

If you buy
Property equity + any surplus invested
If you rent
Down payment + monthly surplus invested
Buying needs at least
How monthly outflows compare over time
Buy/mo
Rent/mo
Difference
Buying path wealth
Renting path wealth
Buying vs renting wealth over time.
How appreciation rate changes the answer Show ▾
App. rate Buying wealth Renting wealth Winner
Factors this calculator cannot model
Security of tenure & stability
✓ Buy ⚠ Rent
Freedom to renovate & customise
✓ Buy ✗ Rent
Leverage on your capital (4–5x via loan)
✓ Buy N/A Rent
Portfolio diversification
⚠ Buy ✓ Rent
Liquidity of your wealth
✗ Buy ✓ Rent
Flexibility to relocate for work
⚠ Buy ✓ Rent
Emotional value of ownership
High Buy — Rent
Was this tool useful?
Tax benefit: Under old regime, Sec 24(b) interest deduction (capped at ₹2L/year) reduces the effective monthly cost of buying. New regime: no deduction, full EMI counted. A simplified annual average is applied uniformly across the tenure for ease of computation.

City presets: Appreciation rates and stamp duties are indicative, drawn from publicly available market data and RBI/PropEquity reports. They represent rough historical averages and should not be taken as forecasts. Actual appreciation varies significantly by micro-market, project quality, and market cycle.

What the model does not include: Brokerage on resale (typically 1%), home insurance, interior fit-out costs, potential rental income if property is let out, or capital gains tax on property sale. These can materially change the outcome in specific scenarios.

This tool is for informational and decision-support purposes only. Property and investment returns are uncertain. Consult a financial advisor before making a decision of this magnitude.
A LoanSach tool · informational use only
RENT
Wealth gap at yr 20