Rent vs Buy Calculator
Monthly rent against a home-loan EMI plus costs you type. You choose the rate. The house is not given a future value. Calculated instantly in your browser.
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Your result
Monthly cost if you buy
₹52,069
- Monthly rent
- ₹25,000
- Buy minus rent, per month
- ₹27,069
- Home-loan EMI
- ₹52,069
- Cash before the first EMI
- ₹20,00,000
- Total interest on the loan
- ₹64,96,655
Chacha's tip
Small changes move the numbers more than you'd think. Tap one to try it.
- The loan is the price minus the down payment, floored at zero. At 8.5% for 20 years the EMI is ₹52,069. That rate is the one you typed, not a bank’s card rate.
- Stamp duty, registration and brokerage are only the one-time amount you typed. This page does not assume a state rate. It also does not value the house at the end, raise the rent over time, or apply a home-loan tax break.
- A lower monthly cost is not a decision to buy. The buy path builds an asset the rent path does not, and it also ties up the upfront cash. Neither of those is priced here.
Rent path and buy path
| Item | Rent | Buy |
|---|---|---|
| Each month | ₹25,000 | ₹52,069 |
| Of which EMI | ₹0 | ₹52,069 |
| Of which costs you typed | ₹0 | ₹0 |
| Cash before the first EMI | ₹0 | ₹20,00,000 |
| Loan | ₹0 | ₹60,00,000 |
| Interest over the tenure | ₹0 | ₹64,96,655 |
Disclaimer: A cash-flow sketch from numbers you typed, not advice to rent or to buy.
How it's calculated
Loan = price − down payment, or zero if the down payment is larger
EMI uses the same reducing-balance formula as the EMI calculator
Monthly cost if you buy = EMI + monthly costs you typed
This is a cash comparison for the first year of ownership. Rent does not rise unless you change the rent box. The loan rate does not reset.
Assumptions
- The rate, the tenure and every cost are what you type.
- No stamp-duty percentage.
- No property appreciation.
- No tax deduction for home-loan interest or principal.
How to use this calculator
- Enter the rent. The monthly rent you pay now, or the rent for a similar house.
- Enter the price and the down payment. The loan is the price minus the down payment.
- Enter the rate and the tenure. Use the rate you were offered. The default is not a quote.
- Add monthly and one-time costs. Society dues or property tax per month, and stamp duty or brokerage as a lump sum you type.
- Read the monthly gap. Buy minus rent. Then look at the upfront cash separately. The house is not valued.
Frequently asked questions
What does this compare?
The rent you type against the EMI on the loan, plus any monthly society or property-tax amount you type. It also shows the cash you pay before the first EMI: down payment plus one-time costs.
Does it tell me to buy?
No. If the EMI is higher than the rent, buying uses more cash each month and you own a house this page does not value. If the rent is higher, renting uses more cash and you do not build that asset. The page stops at the cash.
Where is stamp duty?
In the one-time costs box, as a rupee amount from your own quote. Stamp duty and registration differ by state. This calculator does not apply a percentage.
Is the interest rate a market rate?
No. The default is a placeholder so the form has a number. Replace it with the rate on the sanction you are actually comparing.
Does it include the tax break on home-loan interest?
No. Old-regime home-loan interest has a cap and does not apply in the new regime on this site’s income-tax calculator. Subtracting it here would invent a benefit.
Why is there no appreciation?
A future sale price would be a guess. The comparison is the monthly cash and the upfront cash, which you can know, against an asset value, which you cannot get from this form.
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Results from FinanceChacha are estimates for planning and education, not financial, tax or legal advice.