Renting is ahead by
₹11,34,326
Estimated difference in net worth after 15 years, on the assumptions entered.
Rent vs Buy Calculator
Compare the long-term cost and wealth of renting versus buying a home under your own assumptions.
About a minute
Updated 8 Sept 2026
Results dashboard
Net worth if you buy
₹1,64,65,347
Projected property value less any outstanding loan.
Net worth if you rent
₹1,75,99,672
Down payment plus monthly savings, invested at the assumed return.
Monthly EMI
₹55,541
On a loan of ₹64,00,000 after a ₹16,00,000 down payment.
Total ownership cost paid
₹1,11,97,324
EMIs plus maintenance, tax and insurance over the period.
Total rent paid
₹75,38,707
Rent over the same period, growing each year.
A rent vs buy calculator compares two futures side by side. Buying builds wealth through an appreciating property less the outstanding loan; renting builds wealth by investing the down payment and any monthly saving over ownership costs. Which wins depends entirely on the appreciation, rent growth and investment return you assume — the output is a projection, not financial advice.
Visual breakdown
A visual view of your calculation.
Interactive charts arrive here soon.
Year-wise comparison
Projected net worth under each option, with cumulative outflows.
| Year | Buy net worth | Rent net worth | Ownership paid | Rent paid |
|---|---|---|---|---|
| 1 | ₹22,07,375 | ₹22,35,072 | ₹7,46,488 | ₹3,00,000 |
| 2 | ₹28,54,808 | ₹29,14,656 | ₹14,92,976 | ₹6,21,000 |
| 3 | ₹35,45,023 | ₹36,41,871 | ₹22,39,465 | ₹9,64,470 |
| 4 | ₹42,80,936 | ₹44,20,059 | ₹29,85,953 | ₹13,31,983 |
| 5 | ₹50,65,665 | ₹52,52,795 | ₹37,32,441 | ₹17,25,222 |
| 6 | ₹59,02,553 | ₹61,43,906 | ₹44,78,929 | ₹21,45,987 |
| 7 | ₹67,95,177 | ₹70,97,486 | ₹52,25,418 | ₹25,96,206 |
| 8 | ₹77,47,370 | ₹81,17,917 | ₹59,71,906 | ₹30,77,941 |
| 9 | ₹87,63,237 | ₹92,09,890 | ₹67,18,394 | ₹35,93,397 |
| 10 | ₹98,47,177 | ₹1,03,78,424 | ₹74,64,882 | ₹41,44,934 |
| 11 | ₹1,10,03,904 | ₹1,16,28,892 | ₹82,11,371 | ₹47,35,080 |
| 12 | ₹1,22,38,470 | ₹1,29,67,044 | ₹89,57,859 | ₹53,66,535 |
| 13 | ₹1,35,56,291 | ₹1,43,99,032 | ₹97,04,347 | ₹60,42,193 |
| 14 | ₹1,49,63,175 | ₹1,59,31,442 | ₹1,04,50,835 | ₹67,65,146 |
| 15 | ₹1,64,65,347 | ₹1,75,99,672 | ₹1,11,97,324 | ₹75,38,707 |
Smart Insights
Generated from the numbers you entered — no guesswork.
- After 15 years, renting is projected to leave you about ₹11,34,326 better off.
- Buying needs ₹16,00,000 upfront. Renting keeps that money invested, which is the opportunity cost this comparison captures.
- The loan is not fully repaid within the comparison period — about ₹27,07,119 would still be outstanding.
- The result is highly sensitive to the appreciation and investment return you assume. Change either by a percentage point and the answer can flip.
What is the Rent vs Buy Calculator?
What the tool does, who it is for and what it cannot tell you.
Rent versus buy is not a comparison of rent against EMI. Both options involve money leaving your pocket every month, and both can end with wealth: an owner holds equity in a property, while a renter can hold a portfolio built from the down payment and whatever they save each month.
This calculator makes both sides explicit. On the buying side it computes the EMI, tracks the loan balance month by month, adds maintenance and property tax, and values the appreciated property net of the loan still owed. On the renting side it invests the down payment, adds any month where ownership costs more than rent, and grows the portfolio at your assumed return.
The honest conclusion of any such comparison is that it depends on assumptions. Property appreciation, rent growth and market returns are unknowable, so the useful output is not the winner but the sensitivity: how much each assumption moves the answer.
How does the Rent vs Buy Calculator work?
Each step the calculator runs, in plain language.
- 1
Split the purchase
The down payment percentage fixes the cash you pay upfront and the loan you take for the rest.
- 2
Run the loan month by month
The EMI is applied to interest and principal each month, so the outstanding balance at the end of the comparison period is accurate.
- 3
Grow the property, subtract the loan
The property is appreciated at your assumed rate and the outstanding loan is deducted to give buying net worth.
- 4
Invest what a renter keeps
The down payment starts invested, and each month where ownership costs more than rent, that difference is added to the portfolio.
- 5
Compare and report the gap
Both net worth figures are shown side by side, along with total rent and total ownership outflow.
What to enter in each field
The exact figure each input expects, so the result means what you think it means.
- Property price
- The all-in price you would actually pay. Stamp duty and registration are not modelled, so consider adding them here.
- Monthly rent for a similar home
- Compare like with like — the rent for a home comparable to the one you would buy, in the same area.
- Annual rent increase
- Typical Indian renewals see 5% to 10%. Use what your market actually does.
- Annual property appreciation
- The most influential and least predictable input. Test a low figure as well as an optimistic one.
- Expected investment return if renting
- Should reflect what you would genuinely invest in, not a best case. Only money you actually invest counts.
- Comparison period
- How long you expect to stay in the home. Buying rarely wins over short periods because upfront costs are not recovered.
Rent vs Buy Calculator formula
The exact maths behind every number on this page.
Buy net worth = price × (1 + a)^n − outstanding loan; Rent net worth = future value of (down payment + monthly savings) at r
- a
- Assumed annual property appreciation
- n
- Comparison period in years
- r
- Assumed annual return on investments if you rent
- Monthly savings
- Ownership outflow (EMI + upkeep) minus rent, when positive
EMI is computed with the standard amortisation formula, and the loan balance is reduced month by month so the outstanding amount at the end of the horizon is exact for the rate entered.
Rent vs Buy Calculator calculation example
₹80,00,000 property, 20% down, 8.5% loan over 20 years, versus ₹25,000 rent rising 7% a year, over 15 years.
- 1Down payment20% of ₹80,00,000 = ₹16,00,000
- 2Loan amount₹64,00,000 at 8.5% for 20 years
- 3If buyingProperty appreciates at 6%; the outstanding loan is subtracted
- 4If renting₹16,00,000 plus monthly savings invested at 10%
The calculator shows both net worth figures side by side and states which option is ahead under those assumptions.
Important assumptions
What this calculation includes, and what it leaves out.
- Stamp duty, registration, brokerage, legal fees, moving costs and selling costs are not included. Adding them typically pushes the answer towards renting, especially over short horizons.
- Income tax effects are ignored — no deduction for home loan interest or principal, and no tax on investment gains or rental income.
- The loan interest rate is fixed for the whole tenure and the EMI never changes. Floating rates, prepayments and refinancing are not modelled.
- The renter invests the down payment and only the months where ownership outflow exceeds rent. Any month where rent is higher, no extra is invested and no shortfall is borrowed.
- Property appreciation is a smooth annual rate applied to the purchase price, and maintenance costs are a fixed percentage of that price rather than an inflating amount.
- Rent rises once a year at the rate entered, and the home is assumed occupied continuously with no vacancy or deposit effects.
- This is a projection under your assumptions, not financial advice or a recommendation to rent or buy.
Benefits
Why people use this calculator before signing a loan.
Captures opportunity cost
The down payment is not treated as free — renting invests it, which is the comparison most simple calculators miss.
Shows the crossover
The year-wise table reveals how long you must stay before buying pulls ahead in your scenario.
Tests your assumptions
Change appreciation or return by a point and see how fragile the conclusion is.
Financial tips
Practical guidance to act on your result.
- Run the comparison at a low appreciation rate first — that is the scenario most people fail to plan for.
- If you may move within a few years, count transaction costs; they rarely have time to be recovered.
- Renting only builds wealth if you actually invest the difference. Be honest about whether you would.
- Factor in what you value beyond money: stability and freedom to renovate on one side, flexibility on the other.
Frequently asked questions
Short, direct answers to the questions we hear most.
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Disclaimer
CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.