Rent vs. buy calculator
Compare the true cost of renting against buying over your time horizon. Includes appreciation, tax benefits, opportunity cost and more.
What is a rent vs buy calculator?
A rent vs buy calculator models both housing paths in parallel: buying builds equity and home value, while renting frees up the down payment to invest. The honest answer compares net worth at the end of your time horizon — including taxes, maintenance, opportunity cost, and rent inflation. It depends heavily on how long you'll stay.
Rent vs Buy Calculator (India)
Make informed housing decisions with comprehensive financial analysis for the Indian market
Housing Details
Configure your housing scenario
Example: ₹50,00,000 (50 lakhs)
Initial Investment
₹12,45,000
All upfront costs
Monthly EMI
₹34,713
Principal + Interest
Total Monthly Cost
₹45,213
Including all expenses
Total Rent Paid
₹63,07,877
Over 10 years (nominal)
Real: ₹38,72,490
Total Interest Paid
₹29,65,304
Over loan term
Real: ₹18,20,440
Tax Benefits
₹4,00,000
Section 24(b) savings
Real: ₹2,45,565
Property Value
₹98,35,757
After 10 years (nominal)
Real: ₹60,38,301
Net Worth Difference
+₹35,40,515
Buy vs Rent (nominal)
Real: +₹21,73,569
Break-even Analysis
Time horizon when buying becomes financially advantageous
Nominal Terms
2 years
Break-even point
Inflation-Adjusted (Real)
2 years
Real purchasing power
Time Horizon Financial Analysis
Comprehensive breakdown of costs, investments, and property values over 10 years
Monthly Rent in 10 years
₹74,512
With 8% annual increase
Property Equity
₹70,36,004
Real: ₹43,19,496
Total Invested (Rent Scenario)
₹34,95,489
Real: ₹21,45,927
Actual Property Return
₹43,65,452
Value - Total Costs
Rent Scenario Total Costs
Buy Scenario Total Costs
Key Financial Metrics
Investment Analysis
Net Worth Comparison (Nominal vs Real)
Comparison of net worth between renting and buying scenarios with inflation adjustment
- Rent Net Worth
- Buy Net Worth
- Real Rent Net Worth
- Real Buy Net Worth
Solid lines: Nominal values | Dashed lines: Inflation-adjusted (real) values
How the comparison is built.
The calculator tracks two parallel net-worth paths year by year. The buying path accumulates home equity (appreciation plus principal paydown) and subtracts all ownership costs. The renting path grows your invested down payment at the assumed investment return and subtracts cumulative rent paid.
The year where the buying net-worth line crosses the renting net-worth line is your break-even point. Before that year, renting leaves you ahead financially. After it, buying comes out ahead — all else equal. The exact crossover depends heavily on local appreciation rates and your investment return assumption, so try several scenarios.
- Equity
- Principal paydown — loan balance reduction through monthly payments
- Appreciation
- Price appreciation — home value growth at the assumed annual rate
- Invested DP
- Opportunity cost — down payment compounded at your investment return
- Δ
- Net advantage — positive means buying is ahead; negative means renting is ahead
Six ways to actually use these numbers.
Length of stay is everything.
Under 3 years, renting almost always wins (closing costs are ~3% of home value, eaten in transaction).
Don't forget 1% maintenance.
Plan to spend ~1% of home value per year on maintenance and repairs. Older homes more. Buyers chronically underestimate this.
Rent inflation isn't free either.
Your rent grows. A locked 30-year mortgage doesn't (excluding tax/insurance creep). Long horizons increasingly favor buying for this reason.
Closing costs are real money.
Total transaction costs are typically 5-8% on the buy side, 6% on the sell side. A short hold can erase years of appreciation.
Tax benefits are smaller than you think.
Mortgage interest deduction matters less after the 2017 SALT cap and standard deduction increase. Most middle-income buyers no longer itemize.
Optionality has value.
Renting is a real option to relocate, take a chance on a new city, change jobs. Hard to price in a calculator — but worth weighing.