Rent vs Buy Calculator (India)
Compare renting vs buying in India using a simple model: EMI, rent inflation, property appreciation, and investment returns.
Last reviewed by the Radiatus Cloud team
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Compare renting and buying honestly
Whether to rent or buy a home is one of the biggest financial decisions, and gut feeling usually gets it wrong. This calculator compares renting versus buying in India using a model that accounts for the EMI, rent inflation, and the opportunity cost of your down payment, so the comparison reflects the real economics rather than the myth that rent is money wasted.
Why buying is not automatically better
The belief that buying always beats renting ignores real costs: the interest on the loan, the down payment that could have been invested instead, maintenance, and transaction costs. Renting frees that capital to grow elsewhere. At the same time rent rises over time while an EMI is often fixed. Which wins depends on the numbers, the price-to-rent ratio, the loan rate, expected investment returns, and this model weighs them rather than assuming an answer.
A model, not a verdict
This is an estimate for planning from the figures you enter, not financial advice, and real outcomes depend on rates and rules that change. Confirm anything important with the relevant institution or a qualified adviser. The calculation runs entirely in your browser, so your financial figures are never uploaded.
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Frequently Asked Questions
Is buying always better than renting?
No. Buying carries loan interest, the opportunity cost of the down payment, maintenance and transaction costs. Renting frees that capital to invest. Which wins depends on the numbers.
What is the opportunity cost of a down payment?
The return that money could have earned if invested instead of tied up in property. Ignoring it makes buying look cheaper than it is.
Why does rent inflation matter?
Because rent rises over time while an EMI is often fixed, which shifts the long-run comparison. The model accounts for it.
What decides which is cheaper?
Mainly the price-to-rent ratio, the loan rate, and expected investment returns. The calculator weighs these rather than assuming an answer.
Is this financial advice?
No. It is a planning model. Confirm the assumptions against your situation.
Privacy & Security
Calculated locally in your browser. No data is sent to any server.
How to Use
Enter home price, rent, and assumptions to compare outcomes after N years.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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