Rent vs Buy Property Calculator India 2026
Compare renting vs buying — break-even year, 20-year wealth comparison & city-wise analysis
Property & Financial Details
🏠 BUYING
🏢 RENTING
Break-Even: Year 17
Buying becomes financially superior to renting after year 17 at your inputs.
📊 20-Year Cumulative Cost Comparison
💰 20-Year Wealth Accumulation
Buyer's wealth = Property value − remaining loan | Renter's wealth = down payment invested + savings invested
🏙️ City-wise Recommendation
Mumbai
Price/Rent ratio: ~60x | Appreciation: ~7%
Delhi NCR
Price/Rent ratio: ~45x | Appreciation: ~8%
Bengaluru
Price/Rent ratio: ~35x | Appreciation: ~9%
Hyderabad
Price/Rent ratio: ~30x | Appreciation: ~10%
Chennai
Price/Rent ratio: ~28x | Appreciation: ~8%
Pune
Price/Rent ratio: ~32x | Appreciation: ~9%
* Based on 2025-26 market data. Past appreciation not indicative of future returns. Consult a financial advisor.
🧾 Tax Benefits — Buying vs Renting
🏠 Homebuyer Tax Benefits
- Sec 24(b) — Loan InterestUp to ₹2L/yr
- Sec 80C — PrincipalPart of ₹1.5L cap
- Stamp Duty (Year 1)Part of ₹1.5L cap
- First-Time Buyer 80EEA₹1.5L extra (Old regime)
🏢 Renter Tax Benefits
- HRA Exemption (Salaried)Partial/Full
- Sec 80GG (Non-salaried)₹5,000/month max
- Capital gains on investmentsLTCG 10% after 1yr
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Rent vs Buy Calculator India — Make the Right Decision
Compare the real cost of renting vs buying property in India over 20 years. Factors in EMI, property appreciation, investment returns, tax benefits, and maintenance costs.
Price-to-Rent Ratio by City
Mumbai (50-60): Rent wins | Delhi NCR (40-50): Borderline | Bangalore (30-35): Buy for long-term | Hyderabad/Pune (25-30): Buy makes sense | Tier-2 cities (15-20): Buy strongly recommended
Frequently Asked Questions
Is it better to rent or buy in India?
It depends on the price-to-rent ratio. If property price / annual rent > 30, renting and investing is usually better. For ratios below 20, buying makes more sense. In Mumbai (ratio 50-60), renting often wins; in Hyderabad/Pune (ratio 25-35), buying is smarter.
What is break-even year in rent vs buy?
Break-even year is when your net wealth from buying exceeds net wealth from renting (investing the down payment). This depends on property appreciation, investment returns, and EMI vs rent difference.
What tax benefits do homebuyers get?
Home buyers get: Section 24(b) — ₹2L deduction on home loan interest; Section 80C — up to ₹1.5L on principal repayment; Stamp duty deduction under Section 80C in year of purchase.
What is price-to-rent ratio?
Price-to-Rent ratio = Property Price / Annual Rent. If the ratio is below 15 — buy; 15-20 — buy or rent; 20-30 — rent is better; above 30 — definitely rent.
Should I buy property in Bangalore or Mumbai?
Bangalore has a price-to-rent ratio of 30-35 and 9-10% appreciation — buying makes sense for long-term. Mumbai has ratio of 50-60+ — renting and investing the down payment typically builds more wealth.
What is a good down payment for home loan?
RBI mandates minimum 10-20% down payment. Ideally put 20-25% to keep EMI manageable and get better interest rates. Never put more than 30-35% as equity — preserve liquidity.