Calculator · Free
Rent vs buy.
Plug in property price, down payment, loan terms, current rent in the same area, and your appreciation expectations. We compute cumulative cost over your horizon, surface the break-even year, and recommend the cheaper path on a discounted-cash-flow basis.
Recommendation · 7-year horizon
Renting is cheaper by ₹7.05 L over 7 years.
Buy · NPV cost
₹33.13 L
Rent · NPV cost
₹26.09 L
Break-even
Year 4
Year-by-year walk
| Year | Buy outflow | Rent outflow | Property value | Equity | Buy net |
|---|---|---|---|---|---|
| 1 | ₹10.64 L | ₹3.84 L | ₹1.27 Cr | ₹38.37 L | ₹12.47 L |
| 2 | ₹10.64 L | ₹4.11 L | ₹1.34 Cr | ₹47.26 L | ₹14.22 L |
| 3 | ₹10.64 L | ₹4.40 L | ₹1.41 Cr | ₹56.71 L | ₹15.42 L |
| 4 | ₹10.64 L | ₹4.70 L | ₹1.49 Cr | ₹66.75 L | ₹16.02 L |
| 5 | ₹10.64 L | ₹5.03 L | ₹1.57 Cr | ₹77.41 L | ₹15.99 L |
| 6 | ₹10.64 L | ₹5.39 L | ₹1.65 Cr | ₹88.76 L | ₹15.29 L |
| 7 | ₹10.64 L | ₹5.76 L | ₹1.75 Cr | ₹1.01 Cr | ₹14.74 L |
What drives the recommendation
- · Closing costs of ₹10.20 L (~6.5% stamp duty + 1% registration + 1% brokerage). Real numbers vary by state — Maharashtra and Karnataka are lower; Tamil Nadu, Delhi higher.
- · 0.5% selling brokerage applied at the horizon when liquidating the property.
- · Loan EMI computed on the reducing-balance formula at the rate you entered. Floating-rate behaviour is not modelled.
- · Property appreciation and rent escalation compound annually at the rates you entered. Both are forward-looking estimates and the model is sensitive to them — try ±1.5% to gauge how robust the recommendation is.
- · Tax benefits (Section 24, 80C, 80EEA) are NOT modelled. Add roughly ₹2L/year of cash-equivalent benefit if you fully utilise interest + principal deductions in the 30% slab.
- · NPV uses 6% discount rate. Higher discount rate (you have higher-return alternatives for the down payment) shifts the recommendation towards renting.