Rent vs Buy Calculator
Should you rent or buy a house? Compare all costs including EMI, maintenance, rent increases, and investment returns to make the best decision.
Buy Scenario
Rent Scenario
If you invest the difference (Buy cost - Rent)
The Verdict
After 10 years, financially better to:
RENT
Net Position (Buy)
₹-20.21 L
Net Position (Rent)
₹20.68 L
Cost Comparison Over Time
Complete Cost Analysis
Includes EMI, down payment, maintenance, property tax, rent increases, and opportunity cost.
Investment Returns
See what happens if you invest the difference between buying and renting costs.
Long-term Comparison
Compare outcomes over 5, 10, 20, or 30 years to see the full picture.
How to Use
Set Buy Parameters
Enter home price, down payment, loan rate, and tenure.
Set Rent Parameters
Enter current rent and expected annual rent increase.
Set Investment Return
If renting, what return can you earn by investing the saved money?
Compare Results
See which option gives better net position after X years.
The Formula
Net Position = (Home Value - Total Cost) vs (Investments - Rent Paid)Frequently Asked Questions
Is it better to rent or buy?
It depends on: (1) How long you'll stay (buy wins if 7+ years), (2) Home price appreciation vs rent increases, (3) Your investment returns if renting, (4) Your lifestyle needs. Use this calculator with your real numbers.
What costs does this calculator include?
Buy: Down payment, EMI, property tax, maintenance (1% of value), home appreciation. Rent: Monthly rent with annual increases, investing the saved money (down payment + buy-rent difference).
Why does rent sometimes win?
If property appreciation is low (3-4%) but you can earn 12% by investing in equity, renting + investing can beat buying. Especially in expensive cities where rent is much lower than EMI.
What if I need a house to live in?
This calculator is purely financial. Buying gives stability, no landlord issues, and emotional satisfaction. Renting gives flexibility. Choose based on your life situation, not just money.
What about tax benefits on home loan?
In India, you get ₹2L deduction on interest (80EE/80EEA) + ₹1.5L on principal (80C). This calculator doesn't factor tax benefits yet — buying advantage is even higher with taxes considered.