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Find out if buying a home makes financial sense right now — or if renting and investing gets you further.
Enter your numbers. See which puts more money in your hands: buying a home or staying on rent and investing the difference. Built around Indian tax rules, city-specific rent data, and realistic property appreciation rates.
The calculator compares two paths over your chosen time horizon.
Path 1 - Buy: You take a home loan, pay EMI, build equity as the property appreciates, and claim tax deductions under Section 24 and 80C in the old regime. At the end of the period, you own an asset worth appreciated property value minus outstanding loan.
Path 2 - Rent and invest: You pay rent and invest the monthly EMI-minus-rent difference as a SIP. At the end of the period, you hold a mutual fund corpus with liquid wealth.
The result shows which path leaves you with more net wealth.
One thing to keep in mind: this calculator models wealth. It does not model lifestyle factors such as school proximity, stability, or family preference.
At around 4% annual appreciation, renting and investing in equity mutual funds often wins before year 20 in many scenarios. At 7 to 8%, buying can become competitive sooner. Defaults are city-linked and can be edited.
If EMI is much higher than equivalent rent, the renter can typically invest a larger monthly surplus in the early years. A tighter EMI-to-rent ratio makes buying more competitive faster.
Under old regime assumptions, Section 24 interest deduction and 80C principal deduction reduce effective cost for buyers and can improve buy outcomes. In the new regime, these deductions do not apply.
Appreciation and rental behavior differ significantly between metros and Tier 2 cities. These differences compound over long horizons and can materially change the winner.
There is no universal answer. It depends on your city, property price, loan terms, and how long you plan to stay. In many metros, when EMI is above roughly 1.5x equivalent rent, renting and investing can generate higher net wealth over 15 to 20 years.
Long-term Indian equity benchmarks have generally outperformed residential property appreciation in many cities. Property can still offer non-financial value: stability, utility, and behavioral discipline.
For many metros, 5 to 6% can be a practical long-run assumption. For many Tier 2 cities, 3 to 5% is often more realistic. Use your micro-market data if you have credible long-term evidence.
Yes. Part-prepayments reduce interest burden and tenure, improving buying outcomes. Use Kedil's Prepay vs Invest calculator to model this directly.
This tool supports both. Old regime includes Section 24 and 80C assumptions when enabled. New regime removes those deductions.
This calculator is for informational purposes and does not constitute financial advice. Results depend on assumptions and may differ from actual outcomes. Consult a SEBI-registered financial advisor before making investment or property decisions.
