🏠 Rent vs Buy Calculator 2026
Should you rent or buy a home? Compare both options with comprehensive financial analysis including tax benefits, maintenance costs, and investment returns.
The Verdict
Based on your inputs, renting saves you ₹12.5 lakhs over 10 years
Buying a Home
Renting
Common Assumptions
Buying Summary
Renting Summary
Net Worth After 10 Years
Buy Net Worth
₹ 86,94,329
Home Equity
Rent Net Worth
₹ 78,45,678
Investment Portfolio
Difference
₹ 8,48,651
Buy is better by
Break-even Analysis
You need to stay for at least 8 years for buying to be better than renting.
Year-by-Year Comparison
Monthly Cash Flow - Buying
Tax Benefits (Section 24 & 80C)
Monthly Cash Flow - Renting
Savings vs Buying
Advantages of Buying
- Build equity over time
- Property appreciation potential
- Tax benefits on home loan interest
- Stability and freedom to modify
- Hedge against inflation
Advantages of Renting
- Lower monthly costs
- No maintenance or repair costs
- Flexibility to move easily
- No property tax or insurance
- Invest savings in financial markets
Frequently Asked Questions
What is the 5% rule in rent vs buy?
The 5% rule states that if the annual rent is less than 5% of the home's purchase price, renting is financially better. This 5% accounts for maintenance (1%), property taxes (1%), and the opportunity cost of down payment (3%).
How long should I stay for buying to make sense?
Generally, you need to stay for at least 5-7 years for buying to be better than renting. Use the break-even analysis above for your specific numbers.
What are the hidden costs of buying a home?
Hidden costs include: registration & stamp duty (5-7% of property value), maintenance (1% annually), property tax, home insurance, society charges, and potential repair costs.