Compare buying a home with renting and investing the difference.
It depends on prices, rents and returns. In the example — a ₹80,00,000 home against ₹30,000 rent, after 10 years — renting comes out ahead by ₹8,23,219.74.
Buying builds equity but ties up cash and has ongoing costs; renting is flexible and lets you invest the money you would have put into a home. This calculator simulates both month by month — loan, property tax and maintenance, home price growth, rent increases and the return on invested savings — and compares your net wealth after the years you choose.
The answer is very sensitive to home price growth, rent increases and your investment return, so test several values. It is a simplified model without tax benefits. See the Mortgage Calculator, the Rent Calculator and the House Affordability Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Home price | ₹80,00,000.00 |
| Down payment | ₹16,00,000.00 |
| Monthly EMI | ₹55,540.69 |
| Net wealth if you buy (value − selling costs − loan) | ₹82,90,929.22 |
| Net wealth if you rent (invested savings) | ₹91,14,148.95 |
| Difference (buy − rent) | −₹8,23,219.74 |
| Buying overtakes renting after | Not within 10 years |
| Case | Result |
|---|---|
| Compare after 5 years | ₹4,54,120.91 |
| Compare after 10 years | ₹8,23,219.74 |
| Compare after 15 years | ₹12,74,005.40 |
| Rent ₹40,000 | ₹13,73,559.42 |
| Home price growth 7% | ₹16,15,693.75 |
It depends on how much the home price and rents grow, the interest rate, how long you stay and what you could earn by investing instead.
The year when buying's net wealth overtakes renting's. If it is beyond how long you plan to stay, renting may be better.
Buying has high upfront and selling costs, so it usually needs several years to pay off.
No. Home-loan interest and principal deductions in India's old tax regime, or similar benefits elsewhere, are not modelled.
Use cautious long-run figures for home prices, rent increases and investment returns, and test a range.
The EMI, property tax and maintenance (as a share of the home's value) and the cost of selling.
It uses the standard formula: buy wealth = home value × (1 − selling cost) − loan balance rent wealth = invested savings The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
