Rent vs Buy Calculator

Compare the true cost of renting against buying a home.

Home Purchase

Home Price

₹10 Lac₹5 Cr

Down Payment

%
5%80%

Loan Interest Rate

%
1%15%

Loan Tenure

Y
5 Y30 Y

Renting

Monthly Rent

₹2K₹2 Lac

Annual Rent Increase

%
0%15%

Assumptions

Home Appreciation

%
0%15%

Investment Return (on savings)

%
0%20%

Time Horizon

Y
1 Y30 Y

Renting Wins By

₹6,31,023

Net Cost of Buying

₹-11,86,721

Net Cost of Renting

₹-18,17,744

Breakeven Point

Beyond 10 yr

After 10 Years

Total EMI Paid

₹49,98,662

Home Equity Built

₹73,85,383

Total Rent Paid

₹37,73,368

Investment Corpus (Renting)

₹55,91,111

Assumes the renter invests the monthly gap between the EMI and rent at your chosen return rate. Illustrative estimate — not financial advice.

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How this calculator works

This runs a month-by-month simulation rather than a single formula: each month it pays down the mortgage (tracking the shrinking loan balance and growing home equity) on one side, and grows an investment portfolio seeded by the down payment plus whatever the renter saves versus the EMI on the other. The home also appreciates yearly at your assumed rate.

The breakeven point is the year the "net cost" of buying (cash spent minus equity built) drops below the net cost of renting (rent paid minus investment growth). Small changes to the investment return or home appreciation assumptions can shift that breakeven by years, so it's worth testing a few scenarios rather than trusting one set of numbers.

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