Rent vs Buy Calculator India: Make the Smart 0.5% Decision
Deciding whether to rent or buy a home in India is a major financial milestone. Our Rent vs Buy Calculator India helps you compare the true cost of renting versus buying, factoring in home loan EMIs, property appreciation, rent escalation, and the opportunity cost of your down payment. One of the most important benchmarks in this decision is the 0.5% rule—if your monthly rent is less than 0.5% of the property value, renting may be more cost-effective. Conversely, if rent exceeds 0.5% of the property price, buying could be the smarter choice.
How the 0.5% Rule Works in India
The 0.5% rule is a quick way to evaluate if a property is better rented or bought. For example, if a flat costs ₹1 crore, 0.5% of that is ₹50,000. If your rent is below ₹50,000, renting may be financially wiser, especially when you consider investment returns on your down payment and other costs like maintenance, taxes, and loan interest.
Why Use Our Rent vs Buy Calculator?
- Instantly compare the total cost of renting and buying over your chosen period.
- Includes the 0.5% rule for a quick rent vs buy check.
- Considers Indian home loan rates, rent escalation, and property appreciation.
- Shows the opportunity cost of investing your down payment elsewhere.
How to Use the Calculator
- Enter your property price, down payment, loan details, and current rent.
- Adjust appreciation, rent increase, and investment return rates as per your scenario.
- Click Calculate to see a detailed comparison and a clear recommendation.
Use our Rent vs Buy Calculator India to make a confident, data-driven decision for your future. Whether you're a first-time homebuyer or a seasoned investor, understanding the 0.5% rule and your long-term costs is crucial for financial success.