Home Loan EMI Calculator
Calculate home loan EMI, interest burden, total repayment, and early repayment pattern.
UsePlanning
Rent vs Buy Calculator
Compare buying a home with renting and investing the difference, including loan EMI, buyer costs, tax benefit, maintenance, rent growth, and property appreciation.
Step 1
₹55,541 EMIHome purchase inputs
Step 2
BalancedDecision estimate
VerdictRenting + investing looks betterBy about ₹2,96,00,975 after 20 years.
Buying net worth₹2,08,01,854Home sale value minus loan, plus buyer surplus investments.
Renting corpus₹5,04,02,829Upfront cash and monthly savings invested.
Price-to-rent26.7xProperty price divided by annual rent.
CA view: buying is not only EMI. Stamp duty, registration, maintenance, property tax, tax-regime choice, and exit costs can change the result materially.
Step 3
12% returnRent and investment assumptions
Step 4
Tax and carrying costCA inputs
Finance lens
Comfort checkCost and opportunity comparison
Initial buyer cash₹21,60,000Down payment ₹16,00,000 + transaction cost ₹5,60,000.
Total interest paid₹69,29,765Front-loaded home loan interest over the horizon.
Total rent paid₹99,19,786Rent escalated yearly at 5%.
Affordability ratio31.9%Average owner monthly cost as share of household income.
Yearly table
20 yearsRent vs buy projection
| Year | Home value | Loan balance | Owner net | Rent paid | Owner cost | Renter corpus | Difference |
|---|---|---|---|---|---|---|---|
| 1 | ₹84,00,000 | ₹62,72,625 | ₹19,59,375 | ₹3,00,000 | ₹7,02,488 | ₹28,59,322 | Rent +₹8,99,947 |
| 2 | ₹88,20,000 | ₹61,33,992 | ₹25,09,608 | ₹3,15,000 | ₹7,07,288 | ₹36,36,555 | Rent +₹11,26,947 |
| 3 | ₹92,61,000 | ₹59,83,105 | ₹30,92,675 | ₹3,30,750 | ₹7,12,328 | ₹45,01,042 | Rent +₹14,08,367 |
| 4 | ₹97,24,050 | ₹58,18,880 | ₹37,10,689 | ₹3,47,288 | ₹7,17,620 | ₹54,63,282 | Rent +₹17,52,593 |
| 5 | ₹1,02,10,253 | ₹56,40,140 | ₹43,65,908 | ₹3,64,652 | ₹7,23,177 | ₹65,35,080 | Rent +₹21,69,172 |
| 6 | ₹1,07,20,765 | ₹54,45,600 | ₹50,60,750 | ₹3,82,884 | ₹7,29,011 | ₹77,29,704 | Rent +₹26,68,955 |
| 7 | ₹1,12,56,803 | ₹52,33,865 | ₹57,97,802 | ₹4,02,029 | ₹7,35,137 | ₹90,62,078 | Rent +₹32,64,276 |
| 8 | ₹1,18,19,644 | ₹50,03,415 | ₹65,79,836 | ₹4,22,130 | ₹7,41,570 | ₹1,05,48,985 | Rent +₹39,69,149 |
| 9 | ₹1,24,10,626 | ₹47,52,595 | ₹74,09,818 | ₹4,43,237 | ₹7,48,324 | ₹1,22,09,299 | Rent +₹47,99,481 |
| 10 | ₹1,30,31,157 | ₹44,79,605 | ₹82,90,929 | ₹4,65,398 | ₹7,55,416 | ₹1,40,64,256 | Rent +₹57,73,327 |
| 11 | ₹1,36,82,715 | ₹41,82,485 | ₹92,26,576 | ₹4,88,668 | ₹7,62,862 | ₹1,61,37,744 | Rent +₹69,11,168 |
| 12 | ₹1,43,66,851 | ₹38,59,102 | ₹1,02,20,412 | ₹5,13,102 | ₹7,70,681 | ₹1,84,56,643 | Rent +₹82,36,231 |
| 13 | ₹1,50,85,193 | ₹35,07,135 | ₹1,12,76,355 | ₹5,38,757 | ₹7,78,890 | ₹2,10,51,199 | Rent +₹97,74,844 |
| 14 | ₹1,58,39,453 | ₹31,24,057 | ₹1,23,98,607 | ₹5,65,695 | ₹7,87,511 | ₹2,39,55,449 | Rent +₹1,15,56,842 |
| 15 | ₹1,66,31,425 | ₹27,07,119 | ₹1,35,91,678 | ₹5,93,979 | ₹7,96,562 | ₹2,72,07,704 | Rent +₹1,36,16,026 |
| 16 | ₹1,74,62,997 | ₹22,53,327 | ₹1,48,60,410 | ₹6,23,678 | ₹8,06,065 | ₹3,08,51,082 | Rent +₹1,59,90,672 |
| 17 | ₹1,83,36,147 | ₹17,59,424 | ₹1,62,09,999 | ₹6,54,862 | ₹8,16,044 | ₹3,49,34,120 | Rent +₹1,87,24,121 |
| 18 | ₹1,92,52,954 | ₹12,21,865 | ₹1,76,46,030 | ₹6,87,605 | ₹8,26,522 | ₹3,95,11,459 | Rent +₹2,18,65,429 |
| 19 | ₹2,02,15,602 | ₹6,36,790 | ₹1,91,74,500 | ₹7,21,986 | ₹8,37,524 | ₹4,46,44,610 | Rent +₹2,54,70,110 |
| 20 | ₹2,12,26,382 | ₹0 | ₹2,08,01,854 | ₹7,58,085 | ₹8,49,075 | ₹5,04,02,829 | Rent +₹2,96,00,975 |
CA and finance notes for rent vs buy
Renting is not automatically wasted money, and buying is not automatically wealth creation. The correct comparison is buyer equity after costs versus renter investments from the same upfront cash and monthly cash-flow difference.
For buying, include stamp duty, registration, maintenance, property tax, repairs, society charges, furnishing, loan interest, and exit cost. For renting, include rent escalation and the discipline to actually invest the down payment and EMI-minus-rent difference.
Tax benefit is deliberately entered as actual annual tax saving, not deduction. Under the old regime, interest and principal deductions may help some buyers, but the value depends on income, regime choice, caps, property status, and other deductions.
Rent vs buy FAQs
What price-to-rent ratio is good for buying?
As a quick screen, below 20x often makes buying easier to justify, above 30x often favours renting, and the middle range needs detailed assumptions.
Why include stamp duty and registration?
They are large upfront cash costs and usually do not create resale value. Ignoring them makes buying look too attractive.
Does this include capital gains tax on selling the home?
No. Use the selling cost field for brokerage and exit costs. Capital gains tax depends on holding period, exemptions, indexation rules where applicable, and reinvestment decisions.
Should I buy if the calculator says renting wins?
Not necessarily. Stability, school location, family needs, and emotional value matter. This page only compares the financial side.