EMI vs Rent Calculator
One of the most common property dilemmas in India: should I pay EMI or keep renting? This calculator compares monthly outflows, total long-term costs, and the equity built through appreciation — to help you decide whether now is the right time to buy or rent.
Frequently Asked Questions
When does EMI make more sense than rent?+
EMI often beats rent when: (1) EMI ≤ 1.2× monthly rent for equivalent property, (2) you plan to stay 7+ years, (3) you have a strong down payment, (4) the city has strong appreciation history. In Mumbai/Delhi where price-to-rent ratios are 30–50×, renting is often financially superior despite the "dead money" perception.
Is rent "dead money"?+
Rent buys you flexibility, no maintenance liability, and keeps capital liquid. EMI builds equity but also pays large interest (often 60–80% of first EMIs is interest). Both renting and owning have costs — the question is total wealth creation, not just monthly outflow. The opportunity cost of down payment (invested elsewhere) often exceeds the equity built in early years.
What is the price-to-rent ratio and how do I use it?+
Price-to-rent ratio = Property price / Annual rent. Ratio < 15: buying is typically better. 15–20: borderline. > 20: renting is usually better financially. Mumbai ratio: often 30–50. Bengaluru: 20–30. Hyderabad: 15–25. High ratios mean property is expensive relative to rental income — capital appreciation needed to justify buying.