India's Biggest Financial Decision

Rent vs Buy Calculator: Compare Housing Scenarios

Compare modeled net assets using your rent, property price, loan terms and return assumptions. Use several scenarios alongside affordability and lifestyle considerations.

✓ Comparable cash-flow scenarios
✓ First modeled crossover shown
✓ Editable comparison period
✓ Free, no login
🏠 Renting Details
Current Monthly RentWhat you pay today
₹
₹5K₹2L
Annual Rent IncreaseYour rent increase assumption
% per year
0%20%
🏦 Buying Details
Property Price
₹
₹10L₹5 Cr
Down PaymentTypically 20% of price
% of price
5%100%
Home Loan Interest Rate
% p.a.
0%15%
Loan Tenure
Years
5 yrs30 yrs
Expected Property AppreciationHypothetical property growth
% per year
0%20%
📊 Investment Assumption
Return if Down Payment Invested InsteadHypothetical annual return
% p.a.
0%20%
Time Horizon
Years
1 yr30 yrs
Scenario Comparison
Calculating...
Enter assumptions to compare modeled net assets
🏠 Buying Costs
Monthly EMI—
Down Payment—
Total Purchase Spending—
Property Value—
Modeled Net Assets—
🏢 Renting Costs
Current Rent—
Rent after horizon—
Total Rent Paid—
Initial Cash Growth—
Net Wealth—
⏱ Breakeven Point
—
The year when buying becomes cheaper than renting
Modeled Net Assets — Buying vs Renting Over Time
Buying (Net Assets)
Renting (Net Assets)
⚠️ Important Assumptions: Both options use the same initial cash and monthly housing budget. Each invests unused monthly cash. The comparison is final property equity plus investments, with 1% annual maintenance and 7% initial purchase charges assumed. Taxes, sale fees, deposits and exceptional repairs are excluded. Returns are hypothetical.

Key Factors to Consider

The rent vs buy decision is not just about numbers — these factors matter too

📍
How Long Will You Stay?
Include your likely holding period, moving costs and sale expenses. There is no universal number of years that makes buying better.
💼
Job and Income Stability
A mortgage creates recurring obligations for the contracted term. Compare the payments with stable income, other debts and an emergency reserve. Rent and ownership both have recurring costs.
🏙️
City and Location
Compare actual comparable properties and rent quotes in your location. City labels do not establish which option is better.
😌
Emotional and Lifestyle Value
Owning a home gives stability, the freedom to renovate, and emotional security for your family. These non-financial benefits are real and valid — they can outweigh the financial calculation.

Rent vs buy model questions

Model and content reviewed 2 October 2026. Results depend on your inputs.

The model gives both options the same initial cash and monthly budget. The renter invests the avoided down payment and 7% assumed purchase charges. Each month the option with lower housing costs invests the difference. The buyer’s net assets include property value minus outstanding loan plus accumulated surplus investments.
No. Rent is already a monthly housing expense in the cash-flow comparison. It is displayed as spending information but is not subtracted again from the renter’s final investment balance.
Purchase charges are assumed at 7% of the initial price and maintenance at 1% of that price annually. These are illustration inputs, not local quotations. Sale costs, deposit terms, taxes, loan fees and unusual repairs are excluded.
No. It describes the larger modeled net assets under your inputs. Rates, appreciation, investment returns, rent increases and holding period are uncertain. Lifestyle needs, job mobility and affordability need separate consideration.

RBI: Key Facts Statement guidance in its annual report

Rent vs buy: compare the cashflows, not just rent and EMI

Buying uses a down payment, acquisition costs, loan instalments and maintenance. Renting can leave some initial money available to invest, but rent may rise. This model gives both sides the same monthly cash budget and invests the difference under the entered return assumption.

Check a ₹60 lakh purchase example

At a 20% down payment, the initial down payment is ₹12 lakh and the loan is ₹48 lakh. The model additionally assumes 7% acquisition charges (₹4.2 lakh) and 1% of initial property price in annual maintenance (₹60,000 a year). These are model assumptions, not quotations for your city.

Why can a lower EMI give the wrong impression?

It can result from a longer repayment period. At the comparison date, subtract the remaining loan from the projected property value. A partially repaid property is not the same as a debt-free asset. Likewise, compare an investment’s modeled value after considering its risks and excluded taxes.

What can reverse the outcome?

Try a lower property appreciation rate, a lower investment return, a faster rent increase and a shorter holding period. Changing jobs, transaction costs, property sale delays, repairs, tax treatment and deposit terms need separate consideration. The displayed higher net asset result is a scenario result, not a buy or rent recommendation.

These are original illustrations, not product quotations or return forecasts. Calculation examples checked 22 October 2026.

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