BuyBuying is the better financial choice — ahead by ₹63,61,321over 20 years
Analysis Period
Years to compare20 yr
Renting
Monthly Rentieff. ₹12,000/mo
₹
HRA Tax Benefiti
%
Yearly Rent Increasei
%/yr
Return on Invested Savingsi
%/yr
Buying
Property Costi
₹
Downpaymenti₹12,50,000
%
Registrationi₹2,50,000
%
Brokeragei₹75,000
%
Loan Interest Ratei
%/yr
Income Tax Bracketi
%
Maintenancei₹25,000/yr
%/yr
Maintenance Increasei
%/yr
Property Appreciationi
%/yr
rentvsbuy.inOne calculator for all your finances
Renting assumptions
Analysis period20 years
Monthly rent₹15,000
Effective rent (after HRA)₹12,000/mo
HRA tax benefit20%
Yearly rent increase10%/yr
Return on invested savings10%/yr
Buying assumptions
Property cost₹50,00,000
Downpayment25% (₹12,50,000)
Registration5% (₹2,50,000)
Brokerage1.5% (₹75,000)
Loan interest rate10%/yr
Income tax bracket20%
Maintenance0.5%/yr
Maintenance increase5%/yr
Property appreciation8%/yr
EMI per month
₹36,188
eff. ₹31,367/mo after tax
Property value at end
₹2,33,04,786
8% appreciation/yr
Better off by
₹63,61,321
choosing the better option
Renting
Total rent paid−₹82,47,600
Downpayment invested → grown₹1,05,95,812
Monthly savings invested₹72,58,408
Total wealth gained₹1,78,54,221
Net benefit of renting+₹96,06,621
Buying
Total interest paid−₹49,35,195
Total maintenance paid−₹8,26,649
Downpayment + registration−₹15,00,000
Brokerage−₹75,000
Total cost of ownership−₹73,36,844
Net benefit of buying+₹1,59,67,942
Net benefit over time
Renting
Buying
Net benefit = wealth gained minus total cost. Renting: (invested downpayment + invested savings) − total rent. Buying: future property value − (interest + maintenance + downpayment + registration + brokerage). Sec 24 tax rebate applied (simplified).
Numbers are estimates. Consult a qualified financial advisor before making major decisions. · rentvsbuy.in