Rent vs Buy Calculator India: 10-Year Wealth Comparison
Simulate whether purchasing a property on home loan EMI or renting while investing the down payment into mutual fund equity SIPs builds more wealth over a 10-year horizon.
Indian Real Estate & Financial Market Parameters
₹75.0 Lakhs
₹15.0 Lakhs cash
SBI/HDFC home loan rate
Renting + SIP Investing Outperforms by ₹12.4 Lakhs
Renting while consistently investing the ₹15.0 Lakh down payment and the monthly EMI-rent difference (₹27,069/mo) into a 12% equity index fund creates more liquid wealth over 10 years than paying heavy bank interest.
Frequently Asked Questions
Q:Why is comparing Rent vs Buy not just about comparing Rent with EMI?
A true financial comparison must account for the substantial opportunity cost of your upfront down payment (e.g. 20% + 7% stamp duty and registration). If you rent, that lump sum can compound in a 12% equity index mutual fund. Additionally, you must factor in home loan interest tax benefits, annual property appreciation (5%–7%), rent inflation (5%), and ongoing building maintenance.
Q:When does buying a home make more financial sense in India?
Buying makes more financial sense if: (1) you plan to reside in the property for at least 8 to 10+ years, (2) property appreciation in your specific locality exceeds 6% to 7% annually, and (3) you value emotional security and freedom from landlord rent hikes.
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