Rent vs Buy Calculator
Compare renting vs buying a house.
Rent vs Buy Calculator
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₹
Yrs
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Better Option
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Total Buy Cost—
Home Value After—
Net Equity—
Total Rent Cost—
Compare renting versus buying using monthly cash flow, long-term wealth creation, and opportunity cost. Helpful for urban India and major global cities with high property prices.
What this comparison measures
A good rent-vs-buy decision includes EMI, rent escalation, property appreciation, maintenance, tax impact, and return on the down payment if invested elsewhere.
Decision lens
Net Cost of Buying vs Net Cost of Renting over holding period
Lower net cost with acceptable flexibility usually indicates the better option.
Key assumptions
- Annual rent increase
- Home price appreciation
- Loan interest rate
- Maintenance and taxes
- Investment return on down payment if renting
How to use this calculator
- Enter property value and down payment
- Add loan, rate, and tenure assumptions
- Enter current rent and annual escalation
- Set holding period (for example 7 to 10 years)
- Compare projected net worth in both scenarios
Rent vs buy example
Scenario: Home price Rs 1 crore, rent Rs 30,000/month, down payment Rs 20 lakh, holding period 10 years.
Inputs
- Rent escalation: 6%
- Home appreciation: 5%
- Loan rate: 8.5%
Calculation
- Project cumulative rent paid
- Project loan interest + maintenance + taxes
- Estimate resale value and outstanding loan
- Compare with invested down payment path
Result: Outcome depends on assumptions; in many high-price markets renting can outperform for short holding periods.
Frequently Asked Questions
Buying often wins with long holding periods, moderate rates, and healthy appreciation.
Renting can win when property is expensive versus rent and mobility is important.
No, tax benefits help but should not override cash flow and flexibility realities.
Yes, but include local taxes, currency risk, and legal transaction costs.