Assumptions — change any of these+
Banks usually lend up to 75–90% of the price.
Use the rate you have been offered.
Set by your state.
The biggest guess in the sum.
What the money could earn instead.
The starting figures are examples, not current market rates.
After 10 years, buying and renting finish roughly level.
Buying comes out level if homes gain 5.9% a year. You've assumed 6%.
If you buy
₹98,47,177
what you'd be worth
If you rent and invest
₹97,15,929
what you'd be worth
- Home loan EMI₹55,541 a month
- Cash upfront (down payment + stamp duty)₹21,60,000
- Home value after 10 years₹1,43,26,782
- Loan still owed then₹44,79,605
- Interest paid on the loan₹47,44,487
- Rent paid over the same years₹37,73,368
Buying first pulls ahead in year 10.
Leaves out income-tax benefits on a home loan, the cost of selling, and maintenance rising over time. A guide to the trade-off, not financial advice.
How the comparison works
Both paths start with the same cash: the down payment plus stamp duty and registration. The buyer spends it on the home. The renter invests it.
Each month, the buyer pays the EMI and maintenance and the renter pays rent, which rises once a year. Whichever costs less that month invests the difference. After the years you choose, the buyer is worth the home's value less the loan still owed, plus anything invested; the renter is worth their investments.
The answer turns most on home price growth, because everything else is known or chosen. That's why the result shows the growth at which the two come out level: you can judge that number for your own city.
What it leaves out
- Income-tax benefits on a home loan, which depend on your tax regime.
- The cost of selling the home, if you sell at the end.
- Maintenance and property tax rising over time.
- What money can't price: the security of owning, or the freedom to move.
Renting for now? Check the median rent in your city, work out your HRA tax exemption, or search homes straight from owners.