Rent vs Buy Calculator
Compare net worth after your chosen number of years.
Renting Details
What your down payment / savings could earn
Buying Details
Verdict after 7 years
How the comparison works
Buying: your net worth after the period equals the home's value (after appreciation) minus selling costs and the remaining mortgage balance.
Renting: your net worth equals what your down payment and closing costs would have grown to if invested, plus the monthly difference between the buy cost and your rent, invested over time.
The verdict shows which side has more wealth after the period. Buying usually wins with long stays and strong appreciation; renting wins with short stays or slow price growth.
Rent vs Buy FAQ
On this page
Rent vs Buy Calculator — the honest financial comparison
Should you rent or buy? The answer depends on home appreciation, rent growth, your investment returns and — critically — how long you'll stay. This calculator compares renting and owning side by side over any period, revealing which builds more wealth.
Ownership costs most people forget
Beyond the EMI: property tax, insurance, maintenance (1–2% of home value yearly), renovation and vacancy risk.
The opportunity cost: your down payment could earn returns invested elsewhere.
Home appreciation must outrun all these costs to beat renting — historically 6–9% in Indian metros over decades.
Why the stay period decides everything
Buying costs 3–6% upfront (stamp duty, registration, brokerage) — these must be spread across the years you stay.
Stay 2 years? Renting almost always wins — buying costs are amortized over too few years.
Stay 10+ years? Buying usually wins, especially with rent inflation at 6–8% per year.
The rent-versus-mortgage comparison
Compare: wealth after N years owning (home equity + appreciation − costs) vs wealth renting (invested savings + down-payment growth).
If your extra monthly cost of owning stays below your invested down payment's growth, buying wins.
Non-financial factors — stability, freedom, flexibility — matter too. Put a value on them.
How to use this calculator
- Enter the home price you'd buy.
- Enter the down payment and expected home appreciation.
- Enter the monthly rent and expected rent increase.
- Enter the number of years you plan to stay.
- Read the net cost and wealth comparison for both paths.
Pro tips
- If you might move within 5 years, rent unless confident in appreciation.
- Include the tax benefit of a home loan (80C + 24b) in the ownership column.
- Run the comparison with 0% appreciation too — it reveals your downside.