🏡 Should You Buy or Rent a House in India?

Are you wondering whether to buy or rent a home in India?
The Stockastic Rent vs Buy Calculator is designed to make your decision simple and data-driven. It uses your real-world numbers, Indian home loan tax benefits, house appreciation, rent inflation, and the concept of Net Present Value (NPV) to give you a transparent, personalized comparison.

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🚀 What Is the Stockastic Rent vs Buy Calculator?

This tool helps you answer the classic question:
Should I buy or continue renting my house?

By comparing the total long-term cost of both options—including EMIs, home value growth, tax savings, and rent hikes—it gives you clear insights into which option makes better financial sense for your situation.

🛠️ How to Use the Calculator

1. Enter Your Monthly Rent:
   Input the rent you pay today and the expected annual growth rate of rent in your area.
2. Provide House Purchase Details:
   • Enter the total house price (including registration, brokerage, and other charges).
   • Input your planned down payment amount.
   • Set your expected home loan interest rate and loan tenure (in years).
3. Set Growth Assumptions:
   • Enter the expected yearly growth rate of the house value.
   • Adjust discount rate and tax benefit assumptions using the “Edit Assumptions” button for a custom comparison.
4. See Instant Results:
   The tool instantly shows you:
   • Total EMI paid
   • Total rent paid
   • Total tax saved (on home loan)
   • Future house value
   • Net Present Value (NPV) for both options
   • A recommendation based on your scenario
5. Refine and Explore:
   Change any input and the results update in real time—helping you visualize “what if” scenarios instantly.

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💡 What Is NPV (Net Present Value) and Why Does It Matter?

Net Present Value (NPV) is a financial concept that helps you compare the “today’s value” of future cash flows.
The calculator uses NPV to combine all future payments (EMIs, rent, tax savings, house appreciation) into a single number, adjusting for inflation and the opportunity cost of money. This allows for an apples-to-apples comparison between renting and buying—even when cash flows occur at different times.

• Why use NPV?
  A rupee spent or received today is more valuable than a rupee in the future. NPV helps you see the true cost or benefit of renting vs. buying over the entire decision period.

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🏷️ Key Considerations and Assumptions

• Comprehensive Costs: The calculator includes EMIs, rent, tax savings under Section 80C and 24(b), and final house value after your chosen period.
• Assumes Comparable Homes: The rent and buy scenarios assume the same type of property and location for a fair comparison.
• Customizable Inputs: You can adjust house price, loan rate, tenure, rent growth, and home appreciation to match your scenario.
• Tax Rules: Standard Indian tax benefit limits are applied by default, but you can edit these in the “Edit Assumptions” modal.
• Discount Rate: By default, a discount rate of 7% is used—representing the expected return if you invested your money elsewhere.

Note:
This tool simplifies some aspects for clarity. Costs like maintenance, property tax, or unexpected repairs are not broken out separately—include them in the house price if needed. Always ensure you are comfortable with the EMI and other recurring costs.

✅ Why Use Stockastic’s Rent vs Buy Calculator?

• Real-time results: Instantly see how changing any value impacts your rent vs buy decision.
• Indian context: Fully aligned with Indian home loan, tax, and real estate norms.
• Mobile-friendly and free: No sign-up needed—use on any device, anywhere.
• Educational: Learn about the impact of rent inflation, home appreciation, and opportunity cost in one place.
• Transparent: Clear explanation of all results, with no hidden calculations.

🔎 When Should You Use This Tool?

• Deciding between buying and renting in metros like Mumbai, Delhi, Pune, or Bangalore.
• Planning a long-term stay in a city (5+ years).
• Unsure if a home loan fits your income and goals.
• Comparing the value of home ownership to the returns from investing your savings elsewhere.
• Want to see a data-backed answer, not just an emotional one.

📊 What Can You Calculate With This Tool?

• Total EMIs and rent paid over your chosen period.
• Tax savings from home loan interest and principal repayments.
• Expected future value of your house if you buy.
• Net Present Value (NPV) for both renting and buying.
• A clear recommendation: “Buying may be better” or “Renting may be better”—with the financial difference quantified.

⚠️ Caution & Guidance

• EMI Affordability: Ensure you can comfortably manage monthly EMIs and other ownership expenses before deciding to buy.
• Same House Comparison: The calculator assumes you are comparing similar houses for rent and purchase.
• Other Costs: If you have significant recurring costs (like maintenance), add them to the house price for best results.
• Long-term Perspective: Real estate is a long-term commitment. The best decision is one that fits your finances, lifestyle, and future plans.

🔗 Related Tools

• SIP Calculator – Plan your monthly investments.
• CAGR Calculator – Measure your investment growth over time.
• Stock Return Calculator – Calculate effective returns of your investments

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