How many years of rent buy the flat?
Add up the rent until it matches the flat’s price. The answer is often surprising.
Add up the rent until it equals the flat’s price. At ₹25,000 a month, an ₹80 lakh flat equals 26.7 years of flat rent, or about 17.4 years if rent rises 5% a year. That is a 3.75% gross rental yield. It ignores loan interest, stamp duty, upkeep and price changes, so it is a perspective, not a decision.
Years of rent to equal the price
Gross rental yield: 3.75% a year.
For illustration only. Read the assumptions below for the full picture.
Understand your result.
A quick way to feel the size of a flat’s price is to count how many years of rent it equals. This tool adds up rent, rising each year if you choose, until it matches the purchase price, and shows the gross rental yield.
Indian city flats often rent for 2% to 4% of their price a year, which means decades of rent to match the price. That does not settle rent versus buy: buying needs a down payment, loan interest, stamp duty and upkeep, while the flat’s value may change and renting leaves money free to invest.
A worked example.
Using this calculator’s default inputs, years of rent to equal the price is 17.4 years. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Price of the flat | ₹80,00,000 |
|---|---|
| Monthly rent for a similar flat | ₹25,000 |
| Yearly rent increase | 5 % |
A common mistake to avoid
Treating the number of years as a decision rule, when loan interest, taxes, price changes and how long you will stay can matter more.
Questions you might have.
How many years of rent equal the price of a flat in India?
It depends on the city and flat. At a 3% to 4% gross rental yield, it takes about 25 to 33 years of unchanged rent, and fewer if rent rises each year. Enter local numbers to see yours.
What is a good price-to-rent ratio?
There is no single good number. A high ratio means renting is cheap relative to the price; a low ratio means rent is expensive relative to the price. Loan rates, expected price growth and how long you will stay also matter.
Does a higher rent increase make buying better?
It shortens the years of rent needed to match the price, but buying also has costs this tool leaves out, such as interest, stamp duty and maintenance. Use it to start the conversation, not to finish it.
What is gross rental yield?
Annual rent divided by the property price. A ₹25,000 rent on an ₹80 lakh flat is a 3.75% gross yield, before maintenance, property tax, vacancy and brokerage.
Is this a full rent versus buy calculator?
No. It is a playful ratio. For borrowing costs, use the Loan EMI calculator, and add stamp duty, registration and maintenance to the price you compare.
Prepared by INDwise · Calculation checks: 29 October 2026How we check the maths · Report a correction
How we calculate it
Rent in year k = monthly rent × 12 × (1 + yearly increase)^(k − 1). Years of rent = the point at which cumulative rent equals the price, counted to the month. Gross rental yield = monthly rent × 12 ÷ price.
Assumptions & things to know
A playful ratio, not a rent versus buy decision. It ignores the down payment, home loan interest, stamp duty and registration, maintenance, property tax, any rise or fall in the flat’s value and what the money could earn elsewhere. Use the Loan EMI calculator for the cost of borrowing.
Your privacy & sharing
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