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🏠 Buy vs Rent Calculator — DCF Analysis

BEAR7% app.
BASE9% app.
BULL12% app.
Property Details
₹80 L
20%
8.75%
20 yrs
9%
1.5%
Rent Details
₹25K
5%
15 yrs
Investment & Tax Assumptions
12%
10%
30%
₹1L
⚖️
Enter parameters to get verdict
DCF-based buy vs rent analysis
NPV of Buying
—
vs renting + investing
Break-Even Year
—
When buying wins
Property Value (Y15)
—
After appreciation
Rent Corpus (Invested)
—
If down payment invested
Total Buy Cost
—
EMI+maint+stamp (nominal)
Total Rent Cost
—
Rent payments (nominal)
Tax Benefit (Buy)
—
Sec 24b + 80C
HRA Benefit (Rent)
—
Annual tax saving

📊 Net Position Over Time

🔢 DCF Engine — Net Present Value Breakdown
Property Purchase Price—
Stamp Duty + Registration—
Down Payment (equity deployed)—
PV of all EMI payments—
PV of maintenance costs—
PV of tax benefits (Sec 24b+80C)—
PV of property sale proceeds—
Net Present Value (Buy)—

⚖️ Buy vs Rent — Cost Breakdown

ItemBUYRENT
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——

🔬 Sensitivity — Break-Even by Appreciation Rate

Break-even year at different property appreciation rates. Green = buy wins within 20 yrs.
AI INSIGHTS
💡Enter parameters to get personalized buy vs rent analysis.
Finin2min · Real Estate Intelligence · This is a financial modelling tool, not advice. Actual returns may differ. Consult a SEBI-registered advisor.
⚠ Disclaimer
All calculators on Finin2min are for informational and illustrative purposes only. Calculations are based on user-provided inputs and standard financial formulas. Results are indicative estimates and may not reflect actual returns, tax liability, or financial outcomes. Tax computations are based on publicly available Indian tax laws (Finance Act 2025) and may not account for all individual circumstances. Finin2min is not a registered financial advisor, CA, tax consultant, or legal professional. Always consult a qualified Chartered Accountant, SEBI-registered advisor, or relevant professional before making financial or tax decisions. Finin2min is not liable for any decisions made on the basis of outputs from these calculators.
© 2026 Finin2min. All rights reserved. www.finin2min.com Calculator accuracy not guaranteed · For professional use consult a CA/SEBI advisor

Price-to-Rent Ratio: India's Major Cities (2025)

CityAvg P/R RatioRental YieldVerdict
Mumbai (Central)40–50×2–2.5%Rent
Bengaluru28–35×2.8–3.5%Lean Rent
Hyderabad22–28×3.5–4.5%Neutral
Pune20–25×4–5%Neutral
Ahmedabad / Jaipur12–18×5.5–8%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.

Frequently Asked Questions

Is it better to buy or rent a house in India in 2025? ▼
Depends on city and holding period. In high P/R cities like Mumbai (40–50×) and Bengaluru (30–35×), renting and investing the difference (in SIP/equity) typically generates more wealth over 10–15 years. In lower P/R cities like Ahmedabad (12–18×), buying makes strong financial sense. Use the calculator above with your local rent and property price for a personalised answer.
What is the price-to-rent ratio and how do I use it? ▼
P/R Ratio = Property Price ÷ Annual Rent. Below 15: lean towards buying. 15–20: neutral — consider personal factors (job stability, family plans). Above 20: mathematically favour renting. Example: ₹1 crore flat renting for ₹20K/month = P/R of 41.7 → strongly favour renting.
Does property always appreciate in India? ▼
Indian residential property has appreciated at approximately 4–6% CAGR nominally over 20 years in most cities — below the Nifty 50's ~13% CAGR. After adjusting for inflation (6–7%), real property returns have been flat to negative in many micro-markets. Land and commercial property have fared better. The assumption of "property always goes up" doesn't hold uniformly.
How does HRA affect the buy vs rent decision? ▼
Under the Old Tax Regime, HRA exemption effectively reduces the cost of renting by your marginal tax rate. If you're paying ₹30K/month rent and in the 30% slab, the after-tax rent is approximately ₹21K/month — making renting even more competitive. This HRA benefit disappears under the New Tax Regime. Use our Income Tax Calculator to see your regime comparison.

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