🏠 Rent vs Buy Calculator

How It Works

1. Enter property and rent details — home price, down payment, mortgage rate, and current monthly rent.
2. Add ownership costs — property tax, insurance, maintenance, and HOA fees for a complete picture.
3. Get a clear verdict — see which option saves you more money over your chosen time period with detailed breakdown.

What You Get

• Total cost comparison over any period
• Property appreciation projections
• Opportunity cost of down payment
• Tax benefit calculations
• Breakeven timeline analysis
• 8 currency support
• PDF export of results
• Works offline — no data leaves your device

The Rent vs Buy Decision: What Most People Get Wrong

The biggest misconception in housing decisions is that "rent is throwing money away." In reality, EMI interest is equally "thrown away" — it's the cost of borrowing money, just like rent is the cost of using someone's property. The real question is: where does the difference between EMI and rent go, and what's the opportunity cost?

In most Indian metros, rental yield is only 2-3% of property value. A ₹1 crore flat rents for ₹20-25K/month, but the EMI on the same flat would be ₹70-80K/month. The ₹50K difference, invested in SIP at 12% returns, creates more wealth over 20 years than the property appreciation in most cases. The math favors renting in high-cost cities — but behavioral factors (forced savings discipline, no landlord issues, emotional stability) often tip the scale toward buying.

The break-even point — how many years you must stay before buying becomes cheaper than renting — is typically 7-10 years in Tier 1 Indian cities and 5-7 years in the US. If you're likely to move before that, renting almost always wins financially. Our calculator factors in property appreciation, rent inflation, tax benefits, maintenance costs, and opportunity cost to give you a clear answer for YOUR specific numbers.

Worked Example: ₹1 Crore Flat vs ₹25,000 Rent

Consider a ₹1 crore flat versus renting the equivalent home for ₹25,000/month, over a 10-year horizon:

• Buy: ₹20L down payment + ₹80L loan at 8.5% = ~₹69,600/month EMI
• Rent: ₹25,000/month, rising ~7%/year
• Monthly gap (early years): ~₹44,600 more to buy than to rent
• If that gap is invested at 12%: it compounds to a substantial portfolio
• Property appreciation assumed: ~6%/year

Over 10 years, the renter-who-invests often ends up with comparable or greater net worth than the buyer, once you subtract stamp duty (5-7%), registration, interest, and maintenance from the buyer's side. But extend the horizon to 20+ years and buying usually pulls ahead, because the loan gets paid off while rent keeps rising. The answer genuinely depends on your numbers and how long you'll stay — which is exactly what the calculator resolves.

The Costs Each Side Forgets

Fair comparisons include the hidden costs on both sides:

• Buying: stamp duty & registration (5-7% upfront), property tax, maintenance/repairs (~1% of value/year), home insurance, and the opportunity cost of your down payment.
• Renting: annual rent increases (5-10%), security deposit tied up, no equity build-up, and the risk of forced moves.
• Both: transaction costs when you eventually sell (brokerage, capital gains tax) can erase a "paper" gain if you sell too soon.

The single biggest driver is how long you stay. Buy-and-sell within 3-4 years and transaction costs alone can wipe out any ownership benefit. Stay 15+ years and buying almost always wins.

Frequently Asked Questions