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Modeled, not a verdict

Rent vs Buy Calculator

Comparing monthly EMI to monthly rent is the wrong comparison — it ignores what your down payment could have earned elsewhere, ongoing maintenance, and how much of the property you'd actually own by the end. This weighs the real net cost of each path over a time horizon you choose, under the assumptions you set.

This is a modeled estimate, not a definitive answer. Rent vs buy has no single universally "correct" formula — different calculators structure the opportunity-cost comparison differently, and this one is just one reasonable way to do it. Small changes to your appreciation or investment-return assumptions can flip the result entirely, so treat the output as directional, not precise. It also doesn't model: home loan tax benefits (Section 24(b) interest deduction, 80C principal repayment) which could tilt things toward buying; stamp duty, registration, or brokerage costs on the purchase; moving costs or rental deposits; or non-financial factors like stability, flexibility, and not having a landlord — all of which matter to a real decision this tool can't make for you.

Renting

₹

Typical for Indian residential rent renewals — adjust to your city/lease.

Buying

₹

Applied to the property's appreciated value each year, not just the original price.

Comparison

A typical equity/mutual fund long-term assumption — adjust to your own risk appetite.

Cost of Renting

COST OF RENTING
Total rent paid (with escalation) ₹0
Down payment invested instead → grows to ₹0

NET COST OF RENTING

₹0

Rent paid, minus what your uninvested down payment would have grown to.

MODELED

Cost of Buying

COST OF BUYING
Total EMI paid ₹0
Maintenance & property tax paid ₹0
Down payment opportunity cost ₹0
Property value at end of horizon ₹0
Remaining loan principal owed ₹0

NET COST OF BUYING

₹0

EMI, maintenance, and down payment opportunity cost, minus your net equity (property value less any loan still owed).

MODELED

Verdict

UNDER THESE ASSUMPTIONS

MORE COST-EFFECTIVE

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Fill in both sides above to compare.

ESTIMATED

This is directional, not a verdict — small changes to your appreciation or investment-return assumptions can flip which side wins. See the disclaimer above for what this doesn't account for.

Frequently asked questions

Why doesn't this give one "correct" answer?

Because there isn't one. Rent-vs-buy comparisons are built on assumptions — future appreciation, future investment returns, how long you'll stay — that nobody actually knows in advance. Different financial calculators structure the opportunity-cost math differently too, so even with identical inputs, you'll see different numbers from different tools. Treat this as a way to stress-test your own assumptions, not as an authority.

What does "opportunity cost of the down payment" actually mean?

Your down payment is money you have either way — the question is what you do with it. Put it into a property, and it's illiquid but grows with the property's appreciation. Invest it instead (as a renter effectively would), and it grows at your assumed investment return. This calculator credits each side with what its version of that money became by the end of the horizon, which is why the buy side treats the down payment's foregone investment growth as a cost, and the rent side treats the actual invested growth as an offset.

Does this include home loan tax benefits (Section 24(b), 80C)?

No. Home loan interest can be deducted under Section 24(b) and principal repayment counts toward your 80C limit (old regime only) — both reduce the effective cost of buying, and neither is modelled here. If tax benefits matter to your decision, factor them in separately; they generally shift the comparison in favour of buying.

What about things this can't put a number on?

Stability, not being subject to a landlord's decisions, the flexibility to relocate easily, and the effort of maintaining a property are all real factors in a rent-vs-buy decision — none of them show up in this calculator's output. Use the number here as one input among several, not the deciding one.