Should you Buy or Rent?

Compare the true cost of buying vs renting a home. Factor in EMI, property appreciation, rent increases, tax benefits, and investment returns to make a data-driven decision.

Should you Buy or Rent?

Compare the true cost of buying vs renting a home. Factor in EMI, property appreciation, rent increases, tax benefits, and investment returns to make a data-driven decision.

Should You Buy or Rent?

Adjust the inputs below to compare the true cost of buying a home versus renting and investing the difference.

Compare Buy vs Rent

Buying Details

Property ValueTotal market value of the property you're considering buying.

1 Crore

Down PaymentPercentage of property value paid upfront. Higher down payment means lower EMI.

Loan Interest RateAnnual interest rate on your home loan. Current rates range from 8-9.5%.

Loan Tenure

Property AppreciationExpected annual increase in property value. Indian real estate averages 5-8% long-term.

Stamp Duty & RegistrationOne-time government charge on property purchase. Varies by state (3-8%).

Monthly Maintenance

5 Thousand

Home Insurance

10 Thousand

Renting Details

Monthly Rent

25 Thousand

Annual Rent IncreaseExpected yearly increase in rent. Typical range is 5-10% in Indian cities.

Security Deposit

Broker Fee

Financial Assumptions

Investment Return RateExpected annual return if you invest the savings from renting. Equity mutual funds typically return 10-14% long-term.

Time Horizon

Income Tax BracketYour highest income tax slab. Used to calculate tax benefits under Section 80C and 24(b).

HRA Tax Benefit on RentHRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary (metro) or 40% (non-metro). The tax saving equals exemption × your tax slab rate.

Renting is BetterRenting and investing the difference creates more wealth in your case.

Net advantage₹65.79 L

Total Cost (Buying)

₹1.12 CrProperty value: ₹1.63 Cr

Total Cost (Renting)

₹38.48 LInvestment corpus: ₹1.72 Cr

Monthly EMI

₹71.98 Kvs ₹25.00 K/mo rent (Year 1)

Tax Savings (Buying)

₹10.50 LOver 10 years (80C + 24b)

Breakeven Year

NeverBuying does not surpass renting in this period

Property Value at End

₹1.63 CrLoan balance: ₹56.82 L

Cumulative Cost Comparison

Net Worth Comparison

Monthly Cash Flow

Understanding Buy vs Rent

Everything you need to know about the financial comparison of buying vs renting a home.

Need help deciding buy or rent?

Let our SEBI-registered advisors help you make the right housing decision. Get expert guidance on home loans, investments, and wealth planning.

Discover More on AppUpgrade your journey of wealth creation

Ionic ExclusivesExplore interesting investment opportunitiesKnow More

Accredited InvestorBecome an accredited investor and start Investing with lower ticket sizeKnow More

Legal

Privacy Policy

Terms of Use

Disclaimer

Regulatory Disclosure

ODR Portal

Emailhello@ionic.in

Phone022 4000 3600

Socials

Download the Ionic Wealth App

AMFI Registered Mutual Fund Distributor

Angel One Wealth Limited (AOWL)

ARN AOWL - 293044

CIN AOWL - U66190MH2023PLC411784

Angel One Investment Services Private Limited (AOISPL)

ARN AOISPL - 306165

CIN AOISPL - U66190MH2024PTC426203

SEBI Registered Research Analyst Number- INH000020305

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Registered Office: 601, 6th Floor, Ackruti Star, Central Road, MIDC, Chakala, Andheri (East), Mumbai - 400 093

#NoOneDoesItAlone

CompanyLearn more about Ionic Wealth

Our ApproachUnderstand the framework behind our investment decisions

ExclusivesAccess curated SIFs, PMS, AIFs, bonds, and unlisted equity opportunities

Mutual FundsExplore mutual funds across asset classes

Portfolio StreamlinerFind out how healthy is your portfolio

Become Accredited InvestorUnlock access to exclusive accredited investments

Know your FIRE NumberCalculate your path to financial independence

Buy vs Rent CalculatorCompare the true cost of buying vs renting

Blog

Should you Buy or Rent?

Compare the true cost of buying vs renting a home. Factor in EMI, property appreciation, rent increases, tax benefits, and investment returns to make a data-driven decision.

Should you Buy or Rent?

Compare the true cost of buying vs renting a home. Factor in EMI, property appreciation, rent increases, tax benefits, and investment returns to make a data-driven decision.