Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying a home.
Your calculation is performed locally in your browser. Nothing is sent to any server.
Property & Financial Details
Property Details
Home Loan
Rent Details
Time Horizon
These are user-configurable assumptions, not universal figures - adjust them to match your situation.
Estimated annual increase in the property's market value. Actual prices can rise or fall.
Used to estimate the opportunity cost of buying instead of investing.
Quick Summary
Rent vs Buy Result
Rent vs Buy - Net Wealth Over Time
Secondary Comparison
Cash outlay is what you pay out; net wealth (above) also accounts for home equity and investment growth. The two are not the same thing.
Quick Summary
| Property Price | |
| Monthly Rent | |
| Home Loan EMI | |
| Time Horizon | |
| Estimated Property Value | |
| Outstanding Loan | |
| Total Rent Paid | |
| Buyer Net Position | |
| Renter Net Position |
| Year | Rent Paid | Home EMI | Property Value | Loan Balance | Buyer Net Position | Renter Investment | Renter Net Position |
|---|
What If?
What Matters Most?
Save / Print
Saved calculations are stored only in this browser using local storage - nothing is sent to any server.
Frequently Asked Questions
Is it always better to buy than rent?
No. There is no universal answer - it depends on your assumptions for property appreciation, rent growth, investment returns, loan interest and how long you plan to stay. This calculator estimates the outcome under the specific assumptions you enter, not a general rule.
Why does the calculator compare net wealth instead of just rent versus EMI?
Comparing rent to EMI alone ignores that part of every EMI payment builds home equity, that a down payment has an opportunity cost if invested elsewhere, and that a renter can invest the difference. Net wealth accounts for all of this together.
What does "renter invests the difference" actually mean?
In this model, the renter is assumed to invest the initial cash that a buyer would have used for the down payment and buying costs, plus - in any year where renting costs less than owning - the leftover cash difference. If owning is cheaper than renting in a given year, that difference is not treated as a negative investment; it is simply set to zero.
What is the break-even year?
The first year (within your selected time horizon) in which the buyer's estimated net position catches up to and overtakes the renter's estimated net position, under your entered assumptions. If this never happens within your horizon, the calculator says so directly.
Why do maintenance and property tax change every year?
This calculator applies your maintenance and property tax percentages to the property's current, appreciated value each year rather than the original purchase price, so these costs rise as the property appreciates.
What happens if I set the down payment to 100%?
The loan amount becomes zero, so there is no EMI or interest - the calculator handles this correctly rather than producing an error.
Does the calculator account for tax benefits on home loans?
No. Income tax deductions on home loan interest and principal are not included, since they depend on your personal tax situation and applicable tax law. Treat this as a wealth-comparison tool, not a full tax analysis.
How is the required home loan EMI calculated?
Using the standard reducing-balance EMI formula on the loan amount (property price minus down payment), your entered interest rate and loan tenure. If you add an optional extra monthly prepayment, the loan is simulated month by month so it can pay off earlier than the original tenure.
Can I trust the exact rupee figures shown?
Treat every figure as an estimate, not a forecast. Small changes to property appreciation, rent growth or investment return assumptions can meaningfully change the result - see the "What If?" and "What Matters Most?" sections above.