Buy vs Rent Calculator - Bangalore

A 2BHK in Whitefield costs Rs 80-120 lakh to buy and rents for Rs 25,000-35,000/month. The price-to-rent ratio of roughly 22-25 is borderline. With Bangalore property appreciating 8-10% annually and rents rising 5-8% year-on-year, buying in peripheral tech corridors like Whitefield or Sarjapur has a reasonable 10-year case.

Monthly EMI

₹55,541

Total Buying Cost

₹1,49,29,765

Total Renting Cost

₹99,19,786

Property Value at End

₹2,56,57,084

Break-Even Year

Year 1

Verdict

Buying is better long-term

Compares total cost of buying (down payment + EMIs) vs renting (with annual rent increases) over the loan tenure. Factors in property appreciation for the buying scenario.

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Common questions about Buy vs Rent Calculator - Bangalore

Is Bangalore real estate a good investment vs SIP?

Bangalore property in tech corridors has returned 8-12% CAGR over the past decade. A Nifty 50 index fund SIP returned 12-14% CAGR in the same period with far higher liquidity. The advantage of property: leverage (you control Rs 1 crore asset with Rs 20 lakh down). The disadvantage: illiquidity, maintenance, and 5% stamp duty on purchase.

What localities in Bangalore have the best rent-to-price ratio?

Whitefield, Electronic City, and Sarjapur Road have relatively better rent-to-price ratios (2.8-3.5% annual yield) than central Bangalore (Indiranagar, Koramangala: 1.8-2.5% yield). Newer peripheral areas where prices have not fully caught up to demand offer better investment rationale for buyers.

How does a 20% vs 50% down payment affect the buy vs rent decision?

A higher down payment reduces EMI and improves the financial case for buying. On a Rs 1 crore property, 20% down (Rs 20L): EMI Rs 69,000, total paid over 20 years Rs 1.66 crore. With 50% down (Rs 50L): EMI Rs 43,000, total paid Rs 1.53 crore. Higher down payment = lower opportunity cost of capital locked in.