Rent vs Buy Calculator
Buying builds home equity; renting frees up cash to invest instead. See which path leaves you with more net worth after however many years you choose.
Your numbers
₹
%
%/yr
yrs
₹
What renting a comparable home would cost you today.
%/yr
%/yr
%/yr
What the down payment (and any EMI-vs-rent savings) could earn if invested rather than put into the home.
years
Result — with the workings shown
Buying: net worth
₹64.14 L
home value ₹97.73 L minus ₹33.6 L owed
Renting: net worth
₹68.29 L
down payment + invested savings, grown
Renting wins by
₹4.15 L
after 10 years
How this is worked out
Buying: a ₹12,00,000 down payment gets you a ₹48,00,000 loan at 8.5%/yr, meaning an EMI of ₹41,655.52/mo. After 10 years the home is worth ₹97.73 L (growing at 5%/yr) with ₹33.6 L still owed, netting ₹64.14 L. Renting: you keep that ₹12,00,000 invested instead, and whenever the EMI would've been more than rent, you invest the difference too — growing to ₹68.29 L. Here, Renting comes out ₹4.15 L ahead.
This ignores property tax, maintenance, home insurance, brokerage/registration costs on the buy side, and rental security deposits on the rent side — all of which shift the answer somewhat in real life. Treat this as a directional comparison, not a final decision.
Terms used on this page
- Net worth (in this context)
- For the buyer: home value minus what's still owed on the loan. For the renter: the down payment plus every EMI-minus-rent difference, invested and grown over time.
- Invest the difference
- The core assumption behind renting-and-investing: if renting is cheaper than the EMI in a given month, the renter is assumed to invest that leftover cash instead of spending it.