Real Estate
Rent vs Buy Calculator
Compares the long-term net financial position of renting-and-investing-the-difference vs. buying with a home loan.
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Better financially
Renting & investing the difference
Net worth if you buy
₹1,39,24,307
Net worth if you rent & invest
₹1,57,84,494
Renting & investing the difference builds more wealth over 15 years in this scenario, by ₹18,60,187. This is a financial-only comparison — it excludes stability, customization, and mobility, which matter too.
Buy — net worth₹1,39,24,307
Rent & invest — net worth₹1,57,84,494
How this is calculated
Buy scenario: property appreciation minus outstanding loan balance at the horizon. Rent scenario: the down payment plus any monthly surplus (EMI minus rent) invested monthly at the assumed return. Net worth is compared at the end of the horizon.
Frequently asked questions
Is buying always better than renting long-term?
No — it depends heavily on property appreciation, rent levels, and what return you'd realistically earn by investing the difference instead.
What return should I assume for invested savings?
A diversified equity mutual fund return (10–12%) is a common long-term assumption, but it carries market risk that owning a home doesn't.
Does this account for tax benefits on home loans?
Not directly in this comparison — see the Home Loan EMI Calculator for the Section 24(b)/80C tax benefit estimate.
What about emotional/lifestyle factors?
This tool deliberately excludes them — stability, customization, and mobility are real considerations this calculator can't quantify.