Buy vs Rent Calculator
Compare the financial outcome of buying vs renting over 5/10/15 years.
Fill inputs and click Calculate
- Buy cost = down payment + EMI + maintenance.
- Rent cost = rent paid with annual escalation.
- Final property value is liquidated at end of tenure.
- Excludes taxes, opportunity cost of down payment, and brokerage.
Frequently Asked Questions
Is it better to buy or rent in Kolkata in 2026?
The answer depends on your timeline and financial situation. If you plan to stay in Kolkata for 5+ years and can afford the down payment comfortably, buying is usually better - Kolkata's 8-12% annual appreciation plus 3-4% rental yield gives a total return of 11-16%, compared to renting where you build zero equity. If you're unsure about your long-term plans or your down payment would deplete all savings, renting for 2-3 more years while saving aggressively is prudent.
How does the buy vs rent calculation work?
The calculation compares: (1) Total cost of buying = Down payment + EMIs over the period + Maintenance + Property tax + Transaction costs (stamp duty, registration) - minus property value appreciation; (2) Total cost of renting = Rent payments over the period + Rent increases - minus returns earned by investing the down payment amount elsewhere. If total buying cost < total renting cost over your intended stay period, buying is financially better.
At what point does buying become cheaper than renting?
Generally, buying becomes cheaper than renting when you stay in the same property for 4-7 years (the "break-even period"). In the first few years, buying costs more due to stamp duty, registration, and high interest portions of EMIs. Over time, rent increases (typically 5-10% annually in Kolkata) while your EMI stays fixed, and property appreciation builds equity - eventually tipping the balance in favour of buying. The exact break-even point depends on property price, rent, appreciation rate, and interest rate.
What are the hidden costs of owning that renters don't pay?
Beyond the EMI, homeowners pay: (1) Monthly maintenance: ₹2-8/sqft (₹2,000-8,000 for a 1,000 sqft flat); (2) Property tax: ₹5,000-20,000/year in Kolkata; (3) Insurance: ₹5,000-10,000/year; (4) Repairs and upkeep: 1-2% of property value annually; (5) Society charges and corpus fund contributions; (6) Opportunity cost of the down payment (returns you could have earned investing that money elsewhere). Renters avoid all these but face annual rent increases.
Should I rent and invest the difference instead of buying?
This strategy (renting + investing the money you would have spent on down payment and EMI-minus-rent) can work if you consistently earn 12%+ returns. However, it requires discipline (actually investing the difference), and equity market returns are not guaranteed. Real estate provides leverage (you control a ₹1 crore asset with ₹20 lakh), forced savings through EMI, and inflation hedging. In Kolkata's appreciating market (13.1% in Q2 2026), buying has been the historically better choice for most residents.
Ready to take the next step?
Browse Vision Greens & Rajarhat projects, or book a free consultation.