Buy vs rent
Which costs less over the years you plan to stay.
The numbers
₹85 L
₹24,000
₹17 L
₹3,500
The assumptions
These are guesses, and the result depends on them. Drag them to see how much it changes.
Editable assumption
Editable assumption
About 7.5% in Andhra Pradesh, 6% in Telangana cities
Money a renter keeps earns interest, e.g. an FD
The result
Total cost of buying
₹38,37,590
Total cost of renting
₹36,22,433
Estimated monthly EMI
₹59,443
Break-even point
Not within this period
What this means
With these numbers, buying does not cost less than renting within 10 years. If your plans may change, renting is the safer choice.
Total cost over the years
These results are only estimates for planning. They are not a loan approval or a guarantee.
Where a buyer's money goes
Over 10 years
- Your down payment
- ₹17,00,000
- Stamp duty and registration
- ₹6,37,500
- EMIs paid
- ₹71,33,168
- Maintenance and tax
- ₹4,20,000
- Interest your money could have earned
- ₹42,43,172
- What you own when you sell (after the loan and selling costs)
- − ₹1,02,96,251
- Net cost of buying
- ₹38,37,590
- Total rent paid
- ₹36,22,433
Good to know
Renting works out cheaper
Over 10 years, renting costs about ₹2,15,157 less. Buying makes more sense if you stay longer or prices rise faster.
How long you stay matters most
Buying has big one-time costs (stamp duty, registration, selling). The longer you stay, the more they are spread out. Most people need 7 to 10 years for buying to pay off.
Rent compared with the price
A year's rent is 3.4% of the price. In Indian cities this is usually 2% to 4%, which is why renting is often cheaper in the short run.
Check the price growth you expect
You assumed prices rise 6% a year. Try 4% to see a careful case. The answer can change.