Should you rent or buy?
Your rent, price and loan. Who's ahead, and when.
Sample₹30,000 rent, ₹1.2 Cr home. Type yours.
Renting ahead by ₹3.1 L
Buying wins above 7.2% price growth a year. You put 7%.
See the full numbers
Why it's close in Bengaluru
- Rent is under 4% of the price a yearTimes of India ↗
- Price growth vs your return decides it
- Not counted: tax breaks, maintenance
Read the full explanation
In Bengaluru, a year's rent is under 4% of the home's price (Magicbricks data, Times of India, Feb 2026). So in pure cash terms, renting costs little next to the price of the home. The renter also keeps the down payment and the stamp duty free to invest, and over 10 years that money compounds.
Buying still wins if you stay long enough, or if prices in your area grow well ahead of what your money earns elsewhere. Some areas near new metro lines and tech parks have grown faster than the city for some years. But "property always beats rent" is not a safe rule on its own.
Two inputs do most of the work: how fast the home's price grows, and what you'd really earn if you invested instead. Change either by a point or two and the answer can flip. That's why it's worth running your own numbers, not a rule of thumb.
What the calculator leaves out, and you should weigh yourself: the tax deduction on home loan interest and principal, maintenance and society charges, not depending on a landlord's renewal, and the fact that an EMI makes you save every month.
Illustrative model, not financial advice. Talk to us or your CA before you decide on this alone.
Still not sure? Talk it through.
We'll check your numbers and the tax side with you.
- 100+families advised
- 65buying decisions
- 10+months of advising
Get a call backLeave your number.
Common questions
Is it better to rent or buy a home in Bengaluru right now?
It depends on two numbers: how fast that home's price grows, and what you'd earn if you invested the down payment and stamp duty instead. Rent here is small next to the price, so renting and investing often stays ahead for 10 years or more, unless prices grow fast or you stay very long. Run your own numbers above, not a rule of thumb.
Why does a low rental yield favour renting?
Rental yield (a year's rent ÷ price) is low here, so rent is small next to the home's price. The renter keeps the down payment, the stamp duty and any month the EMI costs more than rent. Invested at a fair return, that money can grow faster than the home's price, mainly when the home grows at the city's average pace.
More questions (5)
What return should I assume if I invest instead of buying?
A return you can really earn year after year, after tax, on this money. Not a hopeful guess. Equity funds have usually done better than an FD over long periods, but they go up and down more than a home. Try a low and a high number and see how much the answer moves.
Does this calculator account for tax benefits on a home loan?
No. Home loan interest and principal can get tax breaks under the Income Tax Act, and those help the buy side. It also leaves out maintenance, society charges and brokerage when you sell, which work the other way. Treat the result as a starting point and check the tax side with your CA.
How much does stamp duty and registration add to the cost of buying?
In Karnataka, stamp duty, cess, surcharge and registration together come to about 7.6% of the price for most homes above ₹45 lakh in a city corporation. The calculator adds this upfront. Use the stamp duty calculator for your exact number. Source: IGR Karnataka.
What's a realistic property appreciation rate to assume in Bengaluru?
Don't trust one number for the whole city. Some areas near new metro lines or big tech parks have grown faster for some years, and others have lagged. Ask about the track record of that exact area before you set this. The line under the result tells you the growth buying needs to win.
If renting comes out ahead, does that mean I shouldn't buy?
Not always. This tool only counts money. Having your own home, not depending on a landlord and the forced saving of an EMI all matter too. Use the number as one input, along with how long you plan to stay.