How to Decide: Two Fast Checks
1) Price-to-Rent Ratio (P/R)
P/R = Home Price ÷ (12 × Monthly Rent).
- < 15: Buying often wins
- 15–25: Depends—run the calculator
- > 25: Renting often wins
2) Total Cost vs Annual Rent
Compare annual owning costs (interest drag, maintenance, taxes, stamp/registration amortized, opportunity cost of down payment) with annual rent. If owning costs are higher and appreciation is uncertain, renting usually makes sense.
Pros & Cons
Renting — Pros
- High flexibility
- Low upfront costs
- Capital remains diversified
- Lower maintenance headaches
Renting — Cons
- No equity build; rent escalates
- Limited control; lease uncertainty
Buying — Pros
- Equity creation via EMI principal
- Stability & customisation
- Potential long-term appreciation
- Hedge against rent inflation
Buying — Cons
- High upfront (down payment, stamp, registration, interiors)
- Concentration & liquidity risk
- Ongoing society repairs/maintenance
- Front-loaded interest; slow early equity build
Rent vs Buy Calculator (India)
Indicative comparison only. Tax rules, yields, and charges vary—adjust to your context.
P/R Ratio: —
