Is buying always better than renting in India?

No. Due to high interest rates and low rental yields (2-3%), renting often saves more cash flow for equity investments. Buying is better if you stay for 15+ years or if appreciation is high.

Why does the renter sometimes win in this calculator?

When the investment return on the downpayment and monthly EMI surplus (opportunity cost) exceeds the property's net appreciation after accounting for interest, maintenance, and tax.

What is the breakeven year?

The year when the buyer's net worth (equity) first exceeds the renter's investment corpus.

Does this work for both tax regimes?

Yes. It specifically accounts for the loss of HRA and Section 24b benefits in the New Tax Regime, which often favors renting.

Rent vs Buy Calculator

Compare the total cost of renting vs buying a home over 10-20 years, including appreciation and maintenance.

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Quick Summary: Rent vs Buy Calculator

In most Indian metros, renting is mathematically cheaper if rental yields are <3% and loan rates are >8.5%, unless property appreciation exceeds 7% annually. In FY 2026-27, with the New Tax Regime removing Section 24(b) benefits for most, the 'Renter' often wins if they invest the EMI-Rent difference in equity mutual funds.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.