Rent or buy: which leaves you better off?
Enter the home's price and a similar home's rent. See your net worth either way after the years you choose.
- Stamp duty and upkeep included
- Your own growth assumptions
- Free, no sign-up
Add the tax side
HRA if you rent, section 24 and 80C if you buy: the tax rules can shift the answer by lakhs.
Questions people often ask
Can I claim HRA and a home loan together?
Yes, if you rent in one city and own a home elsewhere, or have a genuine reason to rent where you own.
Which regime suits buyers?
The old regime lets you claim interest and principal; the new regime doesn't for a home you live in. An expert can compare.
Two paths, one comparison
Net worth after the same years.
- Buy: home value, less the loan still owed.
- Rent: invest the upfront money and each month's difference.
- Compare net worth at the end, before tax.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Master Circular – Housing Finance (RBI/2022-23/16), section 3: loan-to-value limits Reserve Bank of India
Common questions
How does this compare renting and buying?
The buyer pays the down payment, stamp duty and EMIs and owns a home that grows in value. The renter invests the same upfront money and, each month, whatever they spend less than the buyer. We compare net worth at the end.
Why can renting come out ahead?
When a year's rent is a small share of the home's price, less than the interest on a loan to buy it, the renter can invest the difference.
When does buying win?
When home prices grow fast, rents are high compared with prices, or you stay a long time.
What growth rates should I use?
These are your assumptions; no one knows future prices or returns. Try a few combinations to see how sensitive the answer is.
What costs are included?
Down payment, stamp duty and registration, EMIs, and yearly maintenance and property tax. Selling costs and brokerage aren't.
Does tax change the answer?
It can. HRA lowers a renter's tax; home loan interest and principal lower a buyer's in the old regime. This calculator is before tax.
