Inputs
Investment returns are not guaranteed. Markets can fall, and can stay down for years. The return used here is an assumption, not a forecast; try lower ones to see how the answer changes.
How equity gains are taxed
- Held 12 months or less: short-term, taxed at 20% of the gain.
- Held longer: long-term, taxed at 12.5% of the gains above ₹1,25,000 in a year.
- Plus 4% cess on the tax. PPF interest is tax-free; FD and RD interest is taxed every year at your slab rate.
- This tool asks for your return after tax. For an equity fund held for years, that is lower than its return before tax: in the plot vs FD vs fund example, 10% a year before tax keeps about 9.1% a year after tax over 10 years. For a fixed deposit, it is the rate × (1 − your tax rate).
Filled in for you15 years, 20% down payment, homes growing 5% and rent 5% a year, maintenance, selling and loan costs
Home-loan tax benefits
Not modelled yet: the rules depend on your tax regime and need verifying.
Verdict
Renting and investing comes out ₹24.50 lakh ahead after 15 years
That is ₹10.22 lakh in today's rupees. Buying does not catch up within 15 years.
Buying would win if home prices grew faster than 6.58% a year.
This answer uses an example home, rent and return. Put in yours to get your own answer.
- Buy₹84.53 lakh
- Rent and invest₹1.09 crore
- Owner pays a month now
- ₹38,572
- Rent a month now
- ₹15,000
- Home price growth needed to break even
- 6.58%
- Interest paid in 15 years
- ₹42.12 lakh
- Loan paid off
- After year 15
Whoever spends less each month invests the difference at your return.
Saved scenarios
What would flip the answer
Each line changes one input and holds the rest.
- Renting wins over 15 years if homes grow less than 6.58% a yearNow: 5%
Not modelled: weigh these yourself
Show the workingEvery step of the sum, with the numbers above.
Show the chart and scenariosHow the gap changes month by month, and how much the answer moves if prices rise faster or slower.
If prices rise faster or slower
Amounts are buying minus renting after the full period.
Show every monthThe full month-by-month table, with a CSV download.
How this works
The tool follows two households month by month. The buyer pays the EMI, maintenance and property tax. The renter pays rent and invests what the buyer spent at purchase. Each month, whoever pays less invests the difference at your return. At the end, the buyer's net worth is the home's value less the loan still owed and the cost of selling, plus anything they invested; the renter's is their investments plus the deposit back.
Assumptions and sources
| Assumption | Value | Source | As of |
|---|---|---|---|
| UP stamp duty and registration | —Not verified | UP stamp duty and registration fee for residential property (IGRSUP) | 2026-10-19 |
| Home loan rate (default) | —Not verified | typical home-loan rate, cite bank or RBI data | 2026-10-19 |
| Home price growth a year (pessimistic / base / optimistic) | 3% / 5% / 7% | CapitalVerdict default assumption from project spec; user-editable, not a forecast | 2026-10-19 |
| Rent increase a year (pessimistic / base / optimistic) | 7% / 5% / 4% | CapitalVerdict default assumption from project spec; user-editable, not a forecast | 2026-10-19 |
Questions
Why does renting sometimes win?
Because the renter invests the down payment and stamp duty instead of spending them, and keeps investing whenever rent is cheaper than owning. If your return beats home price growth after costs, renting and investing can end ahead.
Are home-loan tax benefits included?
Not yet. They depend on your tax regime and the current rules, which we have not verified. Leaving them out makes buying look slightly worse than it may be under the old regime.
What return should I enter?
What the renter's money would actually earn after tax, in whatever they would really invest it in. A lower figure favours buying; a higher one favours renting.