Rent vs Buy Calculator

Net wealth comparison — buy with home loan vs rent and invest

₹1,00,00,000
₹
20%
%
8.5%
%
20 years
yrs
10 years
yrs

How long you plan to own/stay

₹30,000
₹
7%
%
5%
%

Long-term India avg 4-7% — varies widely by city/micro-market

11%
%

Expected return on money not locked into property (down payment + EMI surplus)

Buy Advantage Over Rent (positive = buy wins)
₹-46,96,642
+₹96,89,440 net wealth if you buy
Net Wealth — Buy₹96,89,440
Net Wealth — Rent + Invest₹1,43,86,083
Property Value at Horizon₹1,62,88,946
Remaining Loan₹55,99,506
Total Rent Paid₹49,73,921
Buy Advantage₹-46,96,642
What this means for you
Buying wins when property appreciation clearly exceeds rental yield + (investment return − loan rate). Rent wins when investment returns sharply beat property appreciation, or when you might relocate within ~5-7 years. This excludes stamp duty (add separately), brokerage, and GST on under-construction property.
What to do next
Add Stamp DutyHome Loan EMI detail
Excludes one-time stamp duty + registration, brokerage, GST on under-construction. Property appreciation varies wildly by micro-market — research your locality.
Net-wealth comparison model
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Formula & SourceRent vs Buy Calculator
BUY net wealth at horizon Y:
  Equity = Price × (1 + apprec)^Y − Remaining Loan − Cumulative Maintenance

RENT net wealth at horizon Y:
  Invest = DownPayment + Σ MAX(0, EMI + Maint − Rent_y) monthly,
  compounded at investReturn

Advantage = Buy − Rent (positive ⇒ buy wins)
Source: Net-wealth comparison model (Indian context)

Frequently Asked Questions

Long horizons (10+ years), strong local appreciation, low loan rate relative to alternative returns. Most decisive in growing tier-1/2 cities held 15+ years.
Current market rent of a comparable property in the same locality — not your aspirational property.
This calculator quantifies pure financial outcome. Stability, freedom to renovate, no landlord — these are real but unpriced. Add ~5-10% to "buy" advantage if you value them highly.
All formulas are verified against the original government notification or Act (cited in the source line below the result). Numbers update in under a second on any input change, with no rounding-of-thousands like some competitors. For tax, slabs are sourced from the current Finance Act; for small savings, rates come from the quarterly government notification.
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