Rent vs Buy Calculator
Real EstateCompare renting against buying on net worth, not just on whether the EMI matches the rent.
Runs entirely in your browser — nothing is uploaded
Features
- Compares owner equity against a renter who invests the difference.
- Year-by-year table showing exactly when buying pulls ahead.
- Includes buying costs, maintenance, property tax and the cost of selling.
- Adjustable appreciation, rent increase and investment return.
- Runs in your browser — your finances are never uploaded.
How to use the Rent vs Buy Calculator
- 1Enter the property price, your down payment and the loan terms.
- 2Enter what the same home would cost to rent, and what you would earn investing instead.
- 3Set how long you expect to stay, then read the year-by-year comparison.
Frequently asked questions
Is buying always better than renting?
No. Buying wins when you stay long enough for appreciation and loan repayment to outrun the money sunk into interest, stamp duty, registration and maintenance. Under about five years, buying costs of 6-8% up front and 1-2% to sell usually make renting the cheaper option — which is why the length of stay matters more than the EMI.
Why does the calculator assume the renter invests the difference?
Because otherwise the comparison is rigged. The buyer puts a large deposit down and pays more each month; if the renter spends that difference rather than investing it, buying wins by default. This models the honest alternative, and it is also the assumption most people fail to keep in practice.
What appreciation rate should I use?
Be conservative. Long-run residential appreciation in most Indian cities has been closer to inflation than to the double-digit figures quoted by sellers, and a couple of percentage points changes the answer completely. Try the calculation at 3%, 5% and 7% and see whether your decision survives all three.
What does this leave out?
Tax deductions on home loan interest and principal, rent agreement costs, and the things that usually decide it — security of tenure, the freedom to move for work, and what owning a home is worth to you beyond resale. Treat the number as one input, not the answer.