Rent vs Buy Calculator

Should you rent or buy? Compare the real cost over time.

🏠 Buying

🏢 Renting

Return on down payment if invested instead

Buying Costs

Down Payment-
Total EMI Paid-
Total Maintenance-
Total Cost-
Property Value-
Net Cost-

Renting Costs

Total Rent Paid-
Investment Value-
Net Cost-

How Does This Calculator Work?

This calculator compares the total financial outcome of buying vs renting over a given period by considering:

  • Buying: Down payment, EMI payments, maintenance costs, and property appreciation
  • Renting: Total rent paid (with annual increases), and the investment growth of the down payment amount if invested in mutual funds instead

The "net cost" for buying = total payments - final property value. The "net cost" for renting = total rent - investment portfolio value.

Key Factors to Consider

  • In metro cities like Mumbai and Bangalore, rent-to-price ratios are typically 2-3%, making renting often cheaper in the short term
  • Property appreciation varies significantly by location - tier-2 cities may appreciate faster than saturated metro markets
  • Buying gives you stability and a forced savings mechanism, while renting gives flexibility
  • Tax benefits on home loan (Section 24, Section 80C) are not included in this calculator for simplicity