What is Rent vs Buy?
The Rent vs Buy Calculator helps you decide whether renting or buying makes more financial sense based on your specific situation. This is one of the most important personal finance decisions.
In India, the price-to-rent ratio in major cities (Mumbai: 30-40x, Bangalore: 25-35x, Delhi: 28-38x) often favors renting. However, buying builds equity and provides stability.
Formula
Total Rent = Sum of monthly rents with annual increases Total Buy = Down Payment + EMIs + Maintenance Home Value = Purchase Price × (1 + Appreciation%)^Years Net Equity = Home Value − Remaining Loan Price-to-Rent Ratio = Home Price / Annual Rent > 20: Renting may be better < 15: Buying may be better
How to use this Rent vs Buy Calculator?
1. Enter home purchase price and monthly rent for a comparable home. 2. Set down payment, loan rate, and how long you plan to stay. 3. Estimate annual property appreciation and rent increases. 4. Compare total costs.