Rent vs Buy Calculator
Compare the total financial cost of renting vs buying over your chosen horizon.
Updated May 2026
Buying Scenario
₹1.50 Crore
Down payment: ₹30.00 Lakh · Loan: ₹1.20 Crore
Usually 5-7% in Mumbai for mid-segment areas. Premium locations can see more.
Society charges, repairs, property tax. Typically ₹3,000-8,000/month.
₹60,000/year
Renting Scenario
₹35,000/month
Usually 7-10% per year in Mumbai. 8% is a reasonable assumption.
If you invest your down payment in mutual funds instead. 10% is conservative long-term equity return.
Buying makes more financial sense for your inputs.
If you stay 10+ years, you'll be ₹39.02 Lakh better off buying than renting. Buying becomes cheaper from Year 5.
This chart shows total money spent (or saved) over time. The line that ends lower is the cheaper option. Where the two lines cross is the break-even point — the year when buying becomes cheaper than renting.
Net buying cost (yr 10)
−₹40,81,357
You come out ahead
Net renting cost (yr 10)
−₹1,79,052
You come out ahead
This calculation uses simplified assumptions. Tax benefits, emotional value of ownership, and location-specific factors are not included. Consult a financial advisor for personalised guidance.
What This Calculator Includes
- Stamp duty (Mumbai rate: 6%) + registration
- Down payment as one-time cost
- All EMI payments over the analysis period
- Annual maintenance / society charges
- Property appreciation building equity
- Rents paid with annual escalation
- Returns on the invested down payment
Not Included (Pro-Buying)
- —Section 24(b) interest deduction (up to ₹2L/year)
- —Section 80C principal deduction (up to ₹1.5L/year)
- —80EEA additional deduction for first-time buyers
- —Emotional value and stability of ownership
- —Protection against eviction and rent hikes
Including these tax benefits would make buying even more advantageous financially.
How the Math Works
Net buying cost = all cash spent (down payment + stamp duty + EMIs + maintenance) minus equity accumulated (property appreciation minus remaining loan balance). Net renting cost = total rent paid minus investment gains on the down payment capital.
Frequently Asked Questions
Verdict (10yr)
Buying wins
by ₹39.02 Lakh