Rent vs Buy Calculator
One of the biggest questions for any Bangalore home seeker: rent or buy? This tool compares the two honestly — the equity you build by buying versus renting and investing the difference — over the years you actually plan to stay.
Your inputs
Assumptions
We also assume maintenance/tax ≈ 0.5% of price per year and transaction costs ≈ 7.6% (Karnataka stamp duty + 2% registration + cess). Adjust the assumptions above to your own view.
Indicative comparison, not financial advice or a guaranteed outcome. Results are highly sensitive to the appreciation and investment-return assumptions, which no one can predict. Use it to understand the trade-off, then talk to an advisor about your specific situation.
How the comparison is calculated
We look at your net worth at the end of your holding period in two scenarios. In the buy scenario, you build equity: your home appreciates while your loan reduces, so your net worth is the home's value minus the outstanding loan. In the rent scenario, you invest the money you would have spent buying — the down payment, transaction costs, and each month's difference between owning costs and rent — and let it grow at your assumed investment return.
The honest caveat: the result swings heavily on two assumptions no one can predict — property appreciation and investment return. Use this to understand the trade-off and pressure-test your own expectations, not as a forecast. It is not financial advice.
Frequently asked questions
Is it better to rent or buy in Bangalore?
It depends on how long you'll stay, the price-to-rent ratio, and what return you could earn by investing instead. Generally, the longer you stay and the higher property appreciation is, the more buying wins. Shorter stays and high investment returns favour renting. Use the calculator with your own numbers.
How does this rent vs buy calculator work?
It compares your net worth at the end of your holding period in two scenarios: buying (home value minus outstanding loan) versus renting and investing the money you'd otherwise spend on the down payment, transaction costs and any monthly difference. It's an assumption-driven estimate, not a prediction.
What assumptions matter most?
Property appreciation and your investment return are the most sensitive inputs — small changes swing the result significantly, and neither can be predicted. Treat the output as a way to understand the trade-off, not a guarantee.
Does buying always build wealth?
Not automatically. Buying builds equity, but transaction costs, maintenance, interest and a short holding period can make renting-and-investing competitive. That's exactly what this tool helps you see.
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