# Rent vs Buy Calculator India: Net Worth Comparison > Rent vs buy calculator India: buying a home on a loan vs renting and investing the difference, with stamp duty, maintenance, price and rent growth. Source: https://trykosh.com/tools/rent-vs-buy-calculator Free tool - Loans and credit cards # Rent vs buy calculator for India Compare your net worth after buying a home with a loan against renting a similar home and investing what you'd otherwise spend. Rules checked 25 October 2026Free - no sign-upRuns in your browser Renting leaves you richer by INR 39,47,530 after 10 years, on these assumptions Net worth if you buy**INR 84.21 lakh** Net worth if you rent**INR 1.24 crore** Owning vs rent, month 1**INR 59,541 vs INR 22,000** Cash at purchase (down payment + costs) INR 21,60,000 Home loan INR 64,00,000 EMI INR 55,541 Home value after 10 years INR 1,30,31,157 − Loan still owed INR 44,79,605 − Selling costs INR 1,30,312 \+ Buyer's investments (when rent cost more than owning) INR 0 Buyer's net worth INR 84,21,241 Renter's net worth (cash invested + monthly savings vs owning) INR 1,23,68,771 Net worth year by year Home value Loan left If you buy If you rent Year 1 INR 84,00,000 INR 62,72,625 INR 20,43,375 INR 28,47,900 Year 2 INR 88,20,000 INR 61,33,992 INR 25,97,808 INR 35,93,360 Year 3 INR 92,61,000 INR 59,83,105 INR 31,85,285 INR 44,01,573 Year 4 INR 97,24,050 INR 58,18,880 INR 38,07,929 INR 52,78,226 Year 5 INR 1,02,10,253 INR 56,40,140 INR 44,68,010 INR 62,29,544 Year 6 INR 1,07,20,765 INR 54,45,600 INR 51,67,957 INR 72,62,343 Year 7 INR 1,12,56,803 INR 52,33,865 INR 59,10,370 INR 83,84,088 Year 8 INR 1,18,19,644 INR 50,03,415 INR 66,98,032 INR 96,02,959 Year 9 INR 1,24,10,626 INR 47,52,595 INR 75,33,925 INR 1,09,27,913 Year 10 INR 1,30,31,157 INR 44,79,605 INR 84,21,241 INR 1,23,68,771 Renting and investing the difference comes out ahead over this period. A longer stay or faster price growth would tilt it towards buying. ## Upload your statement and Kosh does this for you. Upload a bank or card statement and Kosh finds every EMI and card charge, then builds the fastest way out of debt that still fits your month. [Start free](/signup?via=tool-rent-vs-buy-calculator) ## How the rent vs buy calculator works If you buy, you pay the down payment and stamp duty, registration and other costs upfront, then the EMI and maintenance every month. If you rent, you keep that upfront cash invested and pay rent instead. Each month, whichever option costs less frees up the difference, which the calculator invests at the return you choose. The home's value grows at the property price growth rate you enter, and rent grows each year at the rent increase rate. Maintenance, property tax and repairs are a percentage of the home's current value. At the end of your horizon, the buyer's net worth is the home's value minus selling costs and any loan still owed, plus anything they invested. The renter's net worth is their investments. The table shows both, year by year, and the note tells you the year buying pulls ahead, if it does. Rental yields in large Indian cities are often only 2 to 4% of the property price, while home-loan rates are much higher, so renting often wins over shorter stays. Longer stays, faster price growth and higher rents tilt it towards buying. The investment return is an illustrative assumption, before tax; tax benefits on home loans under the old regime are not included. Buyer = home value x (1 − selling cost) − loan left + invested savings; Renter = (down payment + costs) grown + monthly savings invested Monthly savings difference between owning cost (EMI + maintenance) and rent, invested by whoever pays less ## Worked example: The Menons plan to stay 25 years in Coimbatore The Menons compare a INR 60 lakh home, with 25% down and 6% in buying costs, against renting a similar one for INR 20,000 a month. They assume prices and rents both grow 6% a year and investments earn 9%. Owning costs INR 42,052 in the first month against INR 20,000 rent, so renting stays ahead for the first 14 years. Buying pulls ahead in year 15, and after 25 years, with the loan paid off and rents rising, it leaves them richer by INR 15,71,844. Buying leaves you richer by INR 15,71,844 after 25 years, on these assumptions Net worth if you buy**INR 3.07 crore** Net worth if you rent**INR 2.92 crore** Owning vs rent, month 1**INR 42,052 vs INR 20,000** Cash at purchase (down payment + costs) INR 18,60,000 Home loan INR 45,00,000 EMI INR 39,052 Home value after 25 years INR 2,57,51,224 − Loan still owed INR 0 − Selling costs INR 2,57,512 \+ Buyer's investments (when rent cost more than owning) INR 52,40,132 Buyer's net worth INR 3,07,33,844 Renter's net worth (cash invested + monthly savings vs owning) INR 2,91,61,999 Buying pulls ahead from year 15. Moving sooner than that would favour renting. [Load this example into the calculator ->](?years=25&price=6000000&downPct=25&stampPct=6&growth=6&rent=20000&rentGrowth=6&ret=9#calculator) ## Good to know - Stamp duty and registration vary by state, city, property value and buyer (many states charge women buyers less). Check your state's rate and put it in. - Include society maintenance, property tax and periodic repairs. Older buildings and gated complexes cost more to maintain. - Under the old regime, a self-occupied home gives up to INR 2 lakh of interest deduction under 24(b) and principal under 80C. That benefit isn't in this comparison; see the home loan tax benefit calculator. - Renting only wins if the renter actually invests the difference every month. If the money would be spent, buying acts as forced saving. ## Frequently asked questions Is it better to rent or buy a house in India? It depends on how long you'll stay, the price-to-rent ratio in your city, the loan rate and what you'd earn investing instead. In large cities where rent is 2-3% of the price a year, renting often wins over 10 years. Over 20 to 25 years the gap narrows, and buying can come out ahead where rents are high relative to prices. What is the price-to-rent ratio? The home's price divided by a year's rent for a similar home. A INR 1.2 crore flat renting at INR 35,000 a month has a ratio of about 29. Higher ratios favour renting; lower ones favour buying. Does this include home loan tax benefits? No. Under the old regime, a self-occupied home gives up to INR 2 lakh of interest deduction and principal under 80C, which would help the buyer. Under the default new regime, neither applies to a self-occupied home. What return should I assume on investments? Use a figure you're comfortable with for a mix you'd actually hold. The default of 10% is illustrative, before tax, and not a promise; try a lower number to test how sensitive the result is. ## Sources and assumptions - [Reserve Bank of India](https://www.rbi.org.in/) - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.