Rent vs Buy Calculator
Compare the true cost of renting against buying a home.
Home Purchase
Home Price
Down Payment
Loan Interest Rate
Loan Tenure
Renting
Monthly Rent
Annual Rent Increase
Assumptions
Home Appreciation
Investment Return (on savings)
Time Horizon
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.
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 opportunity-cost model, explained
The key idea is that a down payment is money that could otherwise have been invested. So on the "rent" side, this calculator assumes the renter invests both the would-be down payment and any month where rent is cheaper than the EMI, and grows that pool at your assumed investment return. On the "buy" side, the buyer's wealth is instead tied up in home equity. Whichever side ends with more net wealth at your horizon is the cheaper choice in this model — not just cheaper monthly payments.
Which assumption matters most
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). Of the assumptions here, the gap between home appreciation and investment return tends to move the outcome the most — if you expect your invested savings to meaningfully outpace home price growth, renting-and-investing looks better in this model, and vice versa. Small changes to either assumption can shift the breakeven by several years, so it's worth testing a few realistic scenarios rather than trusting one set of numbers.
What this doesn't include
This model doesn't account for property tax, maintenance, home insurance, or renovation costs on the buy side, or rental deposits and moving costs on the rent side — all of which tilt real- world numbers somewhat in favor of renting relative to this simplified model. For a property tax estimate to factor in separately, see the Property Tax Calculator.
Frequently Asked Questions
What costs does this calculator include for buying?
It models the down payment, EMI payments, home appreciation, and the opportunity cost of the down payment (what it could have earned invested instead) — compared against total rent paid and invested savings on the rent side. It doesn't model property tax, maintenance, insurance or renovation costs, which would tilt real-world numbers somewhat toward renting relative to this simplified model.
Is buying always better than renting long-term?
Not necessarily — it depends heavily on how long you stay, local property appreciation, mortgage rates, and how rent and home prices move relative to each other in your market. This calculator helps compare a specific scenario, not declare a universal answer.
Should I get professional advice before deciding?
Yes — this tool is for scenario comparison and informational purposes only. A real estate or financial advisor can factor in your specific market, credit situation, and long-term plans.
What is the 'opportunity cost' of a down payment?
It's what that money could have earned if invested instead of used as a down payment. This calculator assumes a renter invests the equivalent amount (plus any month rent is cheaper than the EMI) at your assumed investment return, and compares that growing portfolio against the home equity a buyer builds.
What single assumption changes the outcome the most?
The gap between your assumed home appreciation rate and investment return rate tends to move the breakeven point the most. If you expect invested savings to meaningfully outpace home price growth, renting-and-investing looks better in this model, and vice versa — small changes to either assumption can shift the breakeven by several years.
This tool provides general estimates for informational purposes only and isn't financial or tax advice. Consult a qualified financial advisor or tax professional before making financial decisions.