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Compare the long-term financial wealth built from buying a house vs renting and investing the difference in mutual funds.
Builds ₹65,97,662 more net wealth over 20 years
Calculations follow official federal and central bank guidelines (IRS, RBI), statutory tax provisions, and standardized actuarial compounding.
Why our math is exact vs other portals →The Rent vs Buy Calculator is built to eliminate financial ambiguity by applying exact Indian financial mathematics rather than generic, oversimplified online estimates.
Whether evaluating interest liability on bank credit, calculating compounding acceleration on systematic investments, or forecasting net post-tax maturity values, accurate forecasting ensures you never misjudge your cash flow or long-term corpus.
Factors in down payment opportunity cost, loan interest, property appreciation, and equity mutual fund compounding.
Generic online estimations without Indian statutory parameters
Standardized actuarial financial mathematics benchmarked against Indian regulatory circulars.
In India, retail lending follows RBI guidelines on reducing balance compounding and External Benchmark Linked Lending Rates (EBLR/RLLR). Fixed deposits follow RBI quarterly compounding mandates, while mutual fund equity investments adhere to SEBI NAV timing and post-Budget 2024 capital gains tax provisions (12.5% LTCG over ₹1.25L).
₹75 Lakh flat vs ₹25,000 monthly rent over 20 years.
Renting and investing the surplus difference builds ₹2.84 Crores in investment portfolio, compared to ₹2.40 Crores in property equity.
Benchmark guaranteed returns, taxation rules, and sovereign safety across India's premier savings instruments.
| Scheme Name | Current Interest Rate | Tenure / Lock-in | Tax Treatment | Safety Guarantee |
|---|---|---|---|---|
| Bank Fixed Deposit (FD) | 6.80% - 7.50% | 7 days to 10 years | Interest fully taxable at slab rate | DICGC Insured up to ₹5 Lakh |
| Public Provident Fund (PPF) | 7.10% (Tax Free) | 15 years lock-in | Exempt-Exempt-Exempt (EEE Status) | Sovereign 100% Guaranteed |
| Employees' Provident Fund (EPF) | 8.25% | Until retirement | Tax-free up to ₹2.5L employee contrib | Sovereign EPFO Managed |
| National Pension Scheme (NPS) | 9.5% - 11.5% (Market) | Up to age 60 | Extra ₹50k deduction under 80CCD(1B) | PFRDA Regulated |
Not necessarily. In cities where rental yields are low (2-3%) and home loan interest is 8.5%+, renting and investing the down payment in mutual funds often generates higher net wealth over 15-20 years.
Calculate Home Loan EMI, interest repayment, and tax deduction under Section 24(b) & 80C.
Calculate future wealth generated through monthly Systematic Investment Plans in mutual funds.
Calculate gross and net rental yield percentages on residential and commercial real estate properties.
Unpack the math between a ₹1.2 Crore home purchase (with ₹90k EMI and 2.5% rental yield) vs renting for ₹35,000 and investing the difference in equity index funds.
How to calculate gross and net rental yield after property tax, maintenance, and vacancy, and why commercial REITs offer superior yields for retail investors.
Deepen your financial planning across interconnected tools. Every calculator within this cluster shares statutory logic and standardized Indian financial formulas.