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Should you buy a home or continue renting? Compare net worth over 10-30 years with real Indian market assumptions
Buying Parameters
Renting Parameters
Enter details and click Compare Buy vs Rent
The rent vs buy decision is arguably the most important financial choice an Indian household makes. With property prices in metros like Mumbai, Delhi, and Bangalore ranging from Rs 50 lakh to Rs 2 crore, the stakes are enormous. Most financial advisors agree that the answer is not universal — it depends on your city, income growth expectations, investment discipline, and how long you plan to stay in the same location. This calculator helps you make a data-driven decision by comparing the financial outcomes of both options over 10-30 years.
The traditional Indian wisdom “owning a home is always better” ignores the opportunity cost of the down payment and the EMI premium over rent. If you put Rs 15 lakh (20% of a Rs 75 lakh home) into an index fund earning 12% annually instead of using it as a down payment, that alone grows to Rs 1.45 crore in 20 years. When you add the monthly savings from cheaper rent, the renting + investing strategy can sometimes outperform buying — especially in high-price, low-rent-yield cities.
This calculator simulates two parallel financial lives over your chosen period. In the “Buy” scenario, you make a down payment, take a home loan, and pay EMI plus annual maintenance. Your net worth is the appreciated property value minus any outstanding loan balance. In the “Rent” scenario, you invest the down payment amount and any monthly savings (EMI + maintenance minus rent) into a diversified portfolio. Your net worth is the investment corpus.
The break-even year is when the “Buy” net worth first exceeds “Rent” net worth. In Indian metros with 2-3% rental yields (rent as % of property value), the break-even typically occurs between year 8 and year 15, depending on property appreciation and investment returns. The recommendation is “Buy” if buying net worth exceeds renting by more than 10%, “Rent” if renting exceeds by more than 10%, and “Neutral” if both are within 10%.
Property appreciation rate is the single biggest factor favoring buying. In cities like Hyderabad and Pune where prices have grown 8-10% annually in recent years, buying almost always wins over 15+ years. Conversely, in saturated markets where appreciation is 3-4%, renting can be significantly better if you are a disciplined investor. Rental yield matters too — Indian cities average 2-3% rental yield, which is among the lowest globally. Low rental yields make renting relatively cheaper compared to buying.
Investment discipline is the hidden assumption in the rent-and-invest strategy. The calculation assumes you will actually invest the difference every month and earn 12% returns consistently. If you tend to spend rather than invest the difference, buying acts as a forced savings mechanism and may be better for you regardless of what the numbers say. Finally, job stability and locationmatter — if you might relocate within 5-7 years, the transaction costs of buying (stamp duty 5-7%, registration, brokerage) can wipe out any appreciation gains.
| Feature | JumpTools | MagicBricks | BankBazaar | ET Money |
|---|---|---|---|---|
| Price | Free | Free (ads) | Free (leads) | Free (upsell) |
| Registration Required | No | No | Yes | Yes |
| Investment Return Factor | Yes - customizable | No | No | Basic |
| Net Worth Chart | Interactive line chart | Basic bar chart | No | Basic |
| Break-even Analysis | Yes - exact year | No | No | Approximate |
| Year-by-Year Table | Full breakdown | Summary only | No | No |
| Privacy | 100% client-side | Server-based | Server-based | Server-based |
Compare buying net worth (property equity) vs renting net worth (investment corpus) over 10-30 years.
Find the exact year when buying overtakes renting, shown visually on the chart with a crossover line.
Unique factor: accounts for what renters could earn by investing the down payment and EMI difference.
Customize property price, down payment, loan rate, tenure, rent, rent hike, appreciation, returns, maintenance, and period.
Line chart comparing buy vs rent net worth over time with break-even crossover point clearly marked.
Instant reference table for properties Rs 20L to Rs 3Cr showing buy vs rent outcomes at 10, 20, 30 years.
Enter Property Details Set property price, down payment %, loan rate, and tenure — or use a preset (Metro/Tier-2/Budget).
Set Rent Parameters Enter current monthly rent, annual rent increase rate, and expected investment returns.
Click Compare View the recommendation (Buy/Rent/Neutral), net worth comparison, and break-even year instantly.
Analyze the Chart Study the year-by-year net worth chart to understand when buying becomes financially better than renting.
Compare buying vs renting a home over 10-30 years. Accounts for property appreciation, home loan EMI, rent increases, and investment returns on the difference. Shows break-even year and net worth chart. 100% client-side — your financial data never leaves your browser.