Enter both scenarios — we calculate break-even year and net wealth after 20 years.
"Should I buy a house or continue renting?" is India's most debated personal finance question. The answer is different for every city, every income level, and every life stage — and the math often surprises people.
This buy vs rent calculator accounts for property appreciation, rent inflation, home loan tax benefits, opportunity cost of down payment, and maintenance costs — giving you a true 10-year picture.
Meet Kavya, 29, software engineer earning ₹18 LPA in Bengaluru. She's choosing between a 2BHK in Whitefield at ₹85 lakh or continuing to rent a similar flat at ₹28,000/month.
| Factor | Buy (₹85L flat, 8.5% loan) | Rent (₹28K/month) |
|---|---|---|
| Monthly outflow | ₹60,000 (EMI) + ₹5,000 (maintenance) | ₹28,000 |
| Down payment | ₹17 lakh (blocked capital) | ₹0 (invest instead) |
| Tax benefit (80EE + 24b) | ~₹4,000/month savings | HRA exemption |
| Property value after 10 years | ₹1.52 crore (6% appreciation) | — |
| Wealth created | ₹67 lakh net equity | ₹48 lakh (if invested) |
Verdict for Kavya: Buying wins by ₹19 lakh over 10 years in Bengaluru's appreciating market. But if she moves cities in 5 years, renting wins by ₹8 lakh (due to transaction costs).
| City | 2BHK Price | Monthly Rent | P/R Ratio | Verdict |
|---|---|---|---|---|
| Mumbai (suburbs) | ₹1.2 crore | ₹35,000 | 28.6 | 🏠 Rent |
| Bengaluru | ₹80 lakh | ₹28,000 | 23.8 | ⚖️ Borderline |
| Hyderabad | ₹75 lakh | ₹22,000 | 28.4 | 🏠 Rent |
| Pune | ₹70 lakh | ₹22,000 | 26.5 | 🏠 Rent lightly |
| Ahmedabad | ₹55 lakh | ₹18,000 | 25.5 | ⚖️ Borderline |
| Tier-2 cities | ₹35 lakh | ₹12,000 | 24.3 | 🔑 Buy |