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Home > Income Tax > Help Center > Rent vs Buy Calculator Last Updated: Jan 31st 2024

Rent vs Buy Calculator

It's often difficult in deciding whether to rent or buy a flat, apartment, or villa. A number of considerations must be made prior to deciding whether to purchase or rent a residence.

The EZTax Rent vs. Buy Calculator attempts to provide guidance on whether to rent or buy a house by analyzing a number of factors, including rental and investment, home loan, and rental details.

Rent Vs Buy Calculator

   Rent vs Buy Calculator

1. Type of Calculator


2. Property Details

Amount can not be -ve value
loan percentage can not be -ve value
{{loanAmount}}loanAmount can not be -ve value
loanTenure can not be -ve value
homeLoanInterest can not be -ve value
EMI can not be -ve value
Expected Annual Appreciation can not be -ve value
Maintenance Cost can not be -ve value
Maintenance Cost Growth can not be -ve value

3. Rental Details

MonthlyRent can not be -ve value
Expected Increment can not be -ve value
Salary can not be -ve value
HRA Received can not be -ve value
Growth In Salary Received can not be -ve value
Growth In HRA Received can not be -ve value
Security Deposit can not be -ve value
Initial Maintenance can not be -ve value

4. Investment Details

Return On Savings can not be -ve value
No. of Years should be more than 0

   Buying is a better financial decisionRenting is a better financial decisionThe cost of Buying / Renting are the same

* If the financial benefit is not that different, lean towards buying a home if your age is more than 36 years and your are buying your 1st home to live.

(A) Actual cost of home including down payment and interest after {{loanTenure}} yearswhen you fully paid in cash


(B) Total rent you pay in {{loanTenure}} yearsin {{projectionTenure}} years , if you live in a rented home


(C) Amount you could invest in other avenues if you live in a rented home (A — B)


(D) Value of your Investment (on C) after {{(mode=='S')?projectionTenure:loanTenure}} years with {{numToStr(returnOnSavings)}}% expected annual return


(E) Your Home Value (using Property Cost) after {{(mode=='S')?projectionTenure:loanTenure}} years with {{expectedAnnualAppreciation}}% annual appreciation


(F) Expected Benefit after {{(mode=='S')?projectionTenure:loanTenure}} years if you buy a home (E — D)


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Frequently asked Questions

1. What is rent vs. buy a home calculator?

EZTax calculator acknowledges that making a decision between renting and buying a home is a difficult one. A number of factors must be considered when deciding whether to rent or buy a home.

It is essential to keep in mind that buying a property is a substantial undertaking that requires a considerable investment of time, money, and effort. Renting presents a decidedly more convenient alternative in that it is always possible to package and vacate.

2. Why should I use this calculator to compare buy versus rent?

Buying property is an important event in the lives of numerous individuals. One may consider comparing the advantages and disadvantages of renting and purchasing in order to decide which option is more advantageous. Several things may be on your mind as you currently weigh the advantages and disadvantages of each option.

Renting typically offers greater short-term cost efficiency and freedom from location constraints, enabling one to maintain mobility. You might have always carried the aspiration of homeownership; however, the feasibility of realizing that goal given your present financial situation remains uncertain.

EZTax calculator gives the flexibility to use in both simple and comprehensive mode to provide an objective recommendation to make a decision.

3. How accurate is the rent vs buy calculator?

While the calculator may offer valuable insights and recommendations, the accuracy of the results may be compromised by market conditions that influence the inputs (e.g., property appreciation rate, interest rate), which may be influenced by both domestic and macroeconomic factors.

4. What benefits does renting offer?

You have more discretion by renting rather than being obligated to a long-term home loan. Long-term cost savings may also result from the absence of HOA / Club expenses, property taxes, and maintenance expenses.

5. What benefits come with owning a home?

One potential long-term financial benefit of homeownership is the potential for appreciation in the value of the property, this is true particularly in fast developing India. It provides both security and the opportunity to increase equity incrementally.

Additionally, the interest paid on the home loan would reduce the taxable income, resulting in tax savings.

Another very important thing to think about is that getting a house can boost the morale and confidence of the whole family because it brings them joy, pride, and a sense of being together.

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Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.