About the Price-to-Rent Ratio Calculator
What is the Price-to-Rent Ratio Calculator?
The price-to-rent ratio compares what a home costs to buy with what it costs to rent for a year. A high ratio means renting is cheap relative to buying.
Enter the price and the monthly rent for a similar home. The rule of thumb: up to 15 favours buying, 15–20 is balanced, and above 20 favours renting.
How to use the Price-to-Rent Ratio Calculator
- Property Price (INR) (sample: 90,00,000)
- Monthly Rent (INR) (sample: 30,000)
- Press Calculate Ratio (results also refresh as you type). The result card shows the Price-to-Rent Ratio, along with Annual Rent, Rule of Thumb and Monthly Rent.
Formula used
Price-to-rent ratio = Property price ÷ (Monthly rent × 12)
- Rental yield = 1 ÷ ratio × 100
Most Indian metros have ratios of 25–40, which is why renting is often cheaper in the short run.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Property Price (INR) | 90,00,000 |
| Monthly Rent (INR) | 30,000 |
| Result | Value |
|---|---|
| Price-to-Rent Ratio | 25 |
| Annual Rent | ₹3,60,000 |
| Rule of Thumb | Renting looks attractive |
| Monthly Rent | ₹30,000 |
Tips for using the Price-to-Rent Ratio Calculator
- Compare the same home, or very similar homes, for buying and renting.
- A high ratio can still justify buying if you expect strong price growth or plan to stay very long.