The exact year buying beats renting — with rent escalation, property appreciation, and opportunity cost of your down payment all modelled in.
If you buy
Property price₹80,00,000
Down payment₹20,00,000
Home loan rate8.5%
Loan tenure20 yrs
Annual property appreciation6%
Maintenance / yr₹60,000
If you rent
Monthly rent₹25,000
Annual rent increase5%
Investment return on savings10%
Analysis horizon
Years to compare15 years
Analysis
Calculating...
Break-even year
Year 9
Buy wealth (yr 15)
₹1.2 Cr
Rent wealth (yr 15)
₹95L
Detailed comparison
Total EMI paid (buying)
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Total maintenance (buying)
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Stamp duty + reg (buying)
—
Property value at end
—
Net wealth — buying
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Total rent paid
—
Invested down payment growth
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Invested savings growth
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Net wealth — renting
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Is it better to rent or buy in India?
How does the rent vs buy calculator work? +
The calculator models two parallel financial scenarios over your chosen time horizon. In the buying scenario, it tracks monthly EMI payments, maintenance costs, stamp duty, and builds up the property equity as the loan reduces and property appreciates. In the renting scenario, it tracks total rent paid (growing at your specified escalation rate) and models the wealth that could be built by investing your down payment and monthly EMI-rent difference at your chosen investment return rate. The break-even year is when buying wealth first exceeds renting wealth.
What is the typical break-even for buying vs renting in Indian cities? +
In most Tier-1 Indian cities, the break-even point for buying versus renting typically falls between 7–12 years, depending on the rent-to-price ratio. Mumbai and Delhi have higher property prices relative to rents, making the break-even longer (often 10–15 years). Hyderabad and Pune tend to have better rent-to-price ratios, with break-evens around 7–10 years. The break-even is heavily influenced by property appreciation rate (assuming 5–8% for Indian metros) and where you invest your savings if renting (equity mutual funds averaging 10–12% CAGR).
What is a good price-to-rent ratio in India? +
The price-to-rent ratio (annual rent × 12 vs property price) is a key metric. In India: below 15 generally favours buying; 15–20 is neutral; above 20 favours renting. Mumbai typically has ratios of 25–40 (strongly favours renting in the short term). Hyderabad and Pune are at 20–25. Tier-2 cities like Ahmedabad, Jaipur, or Lucknow often have ratios below 18, making buying more financially rational. PropIQ's calculator gives you a city-specific break-even rather than relying on this rule of thumb alone.
Should I consider the opportunity cost of the down payment? +
Yes — this is one of the most overlooked factors in the rent vs buy decision. If you invest your down payment (say ₹20 lakhs) in equity mutual funds at 10–12% CAGR instead of paying it toward a home, it could grow to ₹55–80 lakhs over 10 years. Our calculator models this: the renting scenario invests your down payment and the monthly difference between EMI and rent, compounding at your specified investment return. This gives you a true apples-to-apples wealth comparison.