Rent vs Buy Calculator
Settle the rent-vs-buy question with numbers: compare your net worth after buying (home equity) against renting and investing the difference, over how long you actually plan to stay.
Buy Scenario
₹16,00,000 upfront
Renting comes out ahead by
₹10,36,692
over your 10-year stay
Buy: Home Equity
₹98,47,177
Home worth ₹1.43 Crore − loan left ₹44.8 Lakh
Rent: Investment Corpus
₹1,08,83,869
Down payment + monthly savings invested
EMIs Paid (horizon)
₹66,64,882
Rent Paid (horizon)
₹37,73,368
How It Works
Buying a home is not automatically better than renting — it depends on how long you stay, the price, the loan rate, home appreciation and what you could earn by investing instead. This calculator uses the standard "invest the difference" method for a fair comparison. On the buy side, you pay a down payment and EMIs and end up with home equity: the home’s appreciated value minus the loan still outstanding. On the rent side, you invest the down payment you did not spend, plus each month you invest the difference between the buyer’s outgo and your rent, growing it at an expected investment return — while your rent rises each year. After your chosen stay horizon, the calculator compares the buyer’s home equity against the renter’s investment corpus and tells you which comes out ahead, and by how much. As a rule, the longer you stay, the more buying wins; short stays usually favour renting.
Formula
Buy net worth = Home value − outstanding loan. Rent net worth = down payment + monthly (buyer outgo − rent) invested at the return rate. Compare the two after your horizon.
Frequently Asked Questions
Is it better to rent or buy a house?
It depends on your stay length, the price-to-rent ratio, loan rate, appreciation and investment returns. Generally, the longer you plan to stay, the more buying wins; for short stays, renting and investing often comes out ahead.
How does this calculator compare renting and buying?
It uses the "invest the difference" method: the buyer ends with home equity, while the renter invests the down payment plus monthly savings versus the buyer. It compares both net worths after your stay horizon.
Why does how long I stay matter so much?
Buying has large upfront costs (down payment, stamp duty, brokerage) that take years to recover through appreciation. A longer horizon spreads those costs and lets equity build, tilting the maths toward buying.
What does it leave out?
For simplicity it assumes ~1%/yr maintenance and excludes stamp duty, registration, brokerage, home-loan tax deductions and moving costs. Treat the result as a guide to the trade-off, not precise advice.
Does home loan tax benefit change the answer?
It can tilt it toward buying. Home-loan interest and principal offer tax deductions (in the old regime), effectively lowering the cost of buying. Factor your own tax situation in alongside this comparison.