Rent vs Buy Calculator
Compare the financial impact of renting versus buying a home. Analyze total costs, wealth creation, property appreciation vs investment returns, and get a clear verdict on which option is better for you.
Renting is better — You save ₹1,32,98,443
Buying
Monthly EMI
₹34,713
Total Cost of Buying
₹93,31,103
Property Value at End
₹1,32,66,489
Renting
Monthly Rent
₹15,000
Total Rent Paid
₹59,51,872
Investment Corpus
₹2,31,85,700
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Property Value vs Investment Corpus Over Time
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Year-by-Year Comparison
| Year | Buying Cost | Renting Cost | Property Value | Investment Corpus |
|---|---|---|---|---|
| 1 | ₹14,16,555 | ₹1,80,000 | ₹52,50,000 | ₹13,84,942 |
| 2 | ₹18,33,110 | ₹3,69,000 | ₹55,12,500 | ₹18,05,997 |
| 3 | ₹22,49,665 | ₹5,67,450 | ₹57,88,125 | ₹22,66,994 |
| 4 | ₹26,66,221 | ₹7,75,823 | ₹60,77,531 | ₹27,72,198 |
| 5 | ₹30,82,776 | ₹9,94,614 | ₹63,81,408 | ₹33,26,357 |
| 6 | ₹34,99,331 | ₹12,24,344 | ₹67,00,478 | ₹39,34,763 |
| 7 | ₹39,15,886 | ₹14,65,562 | ₹70,35,502 | ₹46,03,314 |
| 8 | ₹43,32,441 | ₹17,18,840 | ₹73,87,277 | ₹53,38,582 |
| 9 | ₹47,48,996 | ₹19,84,782 | ₹77,56,641 | ₹61,47,898 |
| 10 | ₹51,65,552 | ₹22,64,021 | ₹81,44,473 | ₹70,39,440 |
| 11 | ₹55,82,107 | ₹25,57,222 | ₹85,51,697 | ₹80,22,329 |
| 12 | ₹59,98,662 | ₹28,65,083 | ₹89,79,282 | ₹91,06,746 |
| 13 | ₹64,15,217 | ₹31,88,337 | ₹94,28,246 | ₹1,03,04,053 |
| 14 | ₹68,31,772 | ₹35,27,754 | ₹98,99,658 | ₹1,16,26,934 |
| 15 | ₹72,48,327 | ₹38,84,141 | ₹1,03,94,641 | ₹1,30,89,554 |
| 16 | ₹76,64,882 | ₹42,58,349 | ₹1,09,14,373 | ₹1,47,07,730 |
| 17 | ₹80,81,438 | ₹46,51,266 | ₹1,14,60,092 | ₹1,64,99,132 |
| 18 | ₹84,97,993 | ₹50,63,829 | ₹1,20,33,096 | ₹1,84,83,498 |
| 19 | ₹89,14,548 | ₹54,97,021 | ₹1,26,34,751 | ₹2,07,01,518 |
| 20 | ₹93,31,103 | ₹59,51,872 | ₹1,32,66,489 | ₹2,31,85,700 |
Rent vs Buy: Which is Better?
The rent vs buy decision is one of the most important financial choices you will make. While buying a home provides stability and forced savings through EMI payments, renting offers flexibility and the opportunity to invest the difference in higher-return instruments. The right choice depends on your financial situation, career stability, and long-term plans.
Factors to Consider in India
- Rental yield in most Indian cities is only 2-3%, making renting often cheaper
- Property appreciation varies hugely by city and locality
- Home loan interest rates and tax benefits (Section 24, 80C) favor buying
- Stamp duty, registration, and maintenance add 10-15% to buying costs
- Renting gives flexibility to move for career opportunities
Emotional vs Financial Decision
Owning a home brings emotional security and a sense of accomplishment. However, from a pure financial standpoint, renting and investing the difference can sometimes create more wealth. Use this calculator to understand the financial side, but also weigh the non-financial benefits of home ownership that matter to you.