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Rent vs Lease Calculator
Compare renting vs leasing in India with HRA tax benefits, security deposits, brokerage fees, and annual escalations. Make the best housing decision for your situation.
Calculator
Configure your housing parameters
₹
₹
Security Deposits
₹
Typically 2 months rent in India
₹
Typically 6 months lease amount
₹
Rent-side only, typically renewed every 2 years
Annual Escalation
5%
Typically 5-10% in India
0%
Typically 0% (fixed for lease period)
Standard lease lock-in period
HRA Tax Benefits
₹
₹
Recommendation
Renting is Better
You save ₹7,22,348 (49.7%) by renting over 5 years.
Including ₹10,53,038 in HRA tax benefits.
Total Rent Cost (with HRA)
₹7,29,652
Total Lease Cost
₹14,52,000
Rent vs Lease: Cumulative Cost Comparison
Final Cost Breakdown
Total Rent Cost (post HRA)Total Lease Cost
Year-by-Year Breakdown
| Year | Monthly Rent | Rent Cost | HRA Benefit | Monthly Lease | Lease Cost | Difference |
|---|---|---|---|---|---|---|
| Year 1 | ₹25.00 T | ₹3.75 L | ₹1.80 L | ₹22.00 T | ₹3.96 L | Rent saves ₹2,01,000 |
| Year 2 | ₹26.25 T | ₹6.90 L | ₹3.75 L | ₹22.00 T | ₹6.60 L | Rent saves ₹3,45,000 |
| Year 3 | ₹27.56 T | ₹10.46 L | ₹5.86 L | ₹22.00 T | ₹9.24 L | Rent saves ₹4,64,000 |
| Year 4 | ₹28.94 T | ₹13.93 L | ₹8.13 L | ₹22.00 T | ₹11.88 L | Rent saves ₹6,08,000 |
| Year 5 | ₹30.39 T | ₹17.83 L | ₹10.53 L | ₹22.00 T | ₹14.52 L | Rent saves ₹7,22,348 |
Understanding Rent in India
- • 11-month agreements most common
- • 2 months security deposit standard
- • 5-10% annual escalation typical
- • Brokerage: 1 month rent (renewed every 2 years)
- • HRA tax benefits available for salaried
Understanding Lease in India
- • 3+ year lock-in periods
- • 6 months security deposit typical
- • Fixed rates during lease period
- • Lower flexibility to move
- • No HRA benefits (commercial nature)
HRA Tax Benefits
HRA exemption is the minimum of:
- 1. Actual HRA received
- 2. Rent paid − 10% of basic salary
- 3. 50% of basic (metro) / 40% (non-metro)
Ready to make your move?
If buying makes more sense long-term, compare home loan offers with zero processing fees.