Buy vs Rent Calculator
Compare the net worth of buying a home with renting and investing. Results update as you type.
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About the Buy vs Rent Calculator
Compare buying a home with a loan against renting and investing the difference. Enter the price, down payment, loan rate and tenure, current rent, expected rent and price growth, upkeep costs and the return you could earn elsewhere. The calculator shows who is ahead after your chosen number of years, the EMI and the break-even point.
It treats both choices fairly by investing whichever one costs less each month.
Choose your currency (₹, $, €, £ and more) and every amount updates. The calculation runs in your browser, so the numbers you enter are not uploaded.
Buy vs Rent Calculator example
Home price: 8000000
Down payment: 20 %
Home loan interest rate: 8.75 %
Loan tenure: 20 years
Rent for a similar home, per month: 28000
Yearly rent increase: 5 %
Yearly home price growth: 5 %
Upkeep and property tax per year: 1 % of value
Buying costs: stamp duty, registration, brokerage: 6 %
Return if you invest the difference: 8 %
Compare after: 10 yearsRenting comes out ahead by: ₹15,12,024
Net worth if you buy: ₹85,18,355
Net worth if you rent: ₹1,00,30,379
Monthly EMI: ₹56,557
Interest paid on the loan: ₹48,99,701
Home value at the end: ₹1,30,31,157How it is calculated
Every month the buyer pays the EMI and upkeep, while the renter pays rent. The cheaper option’s saving is invested at your return rate, and the renter also invests the down payment and buying costs at the start. At the end, the buyer’s net worth is the home’s value minus the loan balance plus any investments, and the renter’s is the investment pot.
EMI = L × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)Net worth if you buy = home value − loan balance + any money you invest because renting costs moreNet worth if you rent = down payment and buying costs invested + every monthly saving investedEach month the cheaper option’s saving is invested at the return you enter
What to enter
- Down payment. Blank = 20%.
- Yearly rent increase. Blank = 5%.
- Yearly home price growth. Blank = 5%.
- Upkeep and property tax per year. Blank = 1%.
- Buying costs: stamp duty, registration, brokerage. Blank = 0%.
- Return if you invest the difference. Blank = 7% a year.
- Compare after. Blank = 10 years.
Assumptions and limits
Defaults if left blank: 20% down payment, 5% yearly rent increase, 5% yearly price growth, 1% upkeep and tax, 0% buying costs, 7% investment return, 10-year comparison. Enter local figures such as stamp duty for a better answer.
How to use the Buy vs Rent Calculator
- Fill in the fields above. Required fields are marked, optional ones can be left blank and fall back to the defaults described on this page.
- Use “Try an example” to see a worked case, then replace the numbers with your own.
- Read the results as you type. The large card is the main answer and the smaller cards are the related figures.
- Copy a single value or everything, or share a link that keeps your inputs.
Buy vs Rent Calculator FAQ
How does the buy vs rent calculator work?
Every month the buyer pays the EMI and upkeep, while the renter pays rent. The cheaper option’s saving is invested at your return rate, and the renter also invests the down payment and buying costs at the start. At the end, the buyer’s net worth is the home’s value minus the loan balance plus any investments, and the renter’s is the investment pot.
Is renting always cheaper than buying?
No. Over long periods, steady price growth and a modest loan rate often favour buying, while high prices relative to rent, high loan rates and strong investment returns favour renting. Try different inputs.
What does this leave out?
Selling costs, tax benefits on the loan, changes in interest rates, and the value of owning your home for lifestyle or security. It is a simplified model, so treat the result as a guide.
Is this buy vs rent calculator free and private?
Yes. It is free with no sign-up, and the calculation happens on your device, so your numbers are never sent to a server.
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