| Item | BUY | RENT |
|---|---|---|
| Initial Outflow | — | — |
| Monthly Payment | — | — |
| Total Payments (nominal) | — | — |
| Maintenance Cost | — | Nil |
| Annual Tax Benefit | — | — |
| Opportunity Cost of Down Payment | — | Nil (invested) |
| Asset Value at End | — | ₹0 |
| NET POSITION | — | — |
Enter the property price, your expected down payment, home loan interest rate and tenure for the "Buy" scenario, plus your current monthly rent and expected annual rent escalation for the "Rent" scenario. Add assumptions for property appreciation, maintenance costs and the return you could earn by investing the down payment and EMI-rent difference instead (e.g. via an SIP). The calculator projects net wealth under both scenarios over your chosen time horizon and tells you which option builds more wealth — along with the break-even point.
The decision is highly sensitive to property appreciation rate, rent escalation, and the return assumed on invested surplus — small changes to these inputs can flip the verdict, so it's worth testing a few scenarios. See the Buy vs Rent in India 2025 guide for a detailed worked example.
| City | Avg P/R Ratio | Rental Yield | Verdict |
|---|---|---|---|
| Mumbai (Central) | 40–50× | 2–2.5% | Rent |
| Bengaluru | 28–35× | 2.8–3.5% | Lean Rent |
| Hyderabad | 22–28× | 3.5–4.5% | Neutral |
| Pune | 20–25× | 4–5% | Neutral |
| Ahmedabad / Jaipur | 12–18× | 5.5–8% | Buy |
P/R = Property Price ÷ Annual Rent. Below 15: favour buying. 15–20: neutral. Above 20: renting typically more efficient. Source: estimates based on 2025 residential market data.