Rent Vs Buy Calculator — Calculations & Slabs for FY 2026-27

Property appreciation is the primary driver of wealth creation in homeownership. If appreciation is high (e.g., 6% or more per year), buying becomes profitable much faster. If appreciation is low, renting and investing your savings in equity markets might yield better financial outcomes.

The break-even year is the point in time where the net wealth accumulated from buying a home (which includes property appreciation minus home loan EMIs, interest, down payment, and maintenance) exceeds the net wealth from renting (where rent is an expense, but savings on down payments can be invested elsewhere). Typically, this happens within 5 to 9 years.

Generally, no. Buying a home involves high transaction costs such as registration charges, stamp duty (typically 5-7% of property value), and bank processing fees. If you relocate in 3 years, you won't have enough time to recover these upfront costs through property appreciation.

Yes, under Section 24(b) of the Income Tax Act, you can claim a deduction of up to ₹2,00,000 per year on the interest paid for a self-occupied property. Additionally, the principal repayment component can be claimed under Section 80C up to a limit of ₹1,50,000 per year.

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.