Rent vs Buy Calculator
Compare the financial costs of renting versus buying a home over time.
Rent Details
Monthly Rent
₹
Annual Rent Increase (%)
%
Buy Details
Property Value
₹
Down Payment (%)
%
Loan Tenure (Years)
Yr
Home Loan Rate (%)
%
Property Appr. (%)
%
Financial Verdict
Buying is better
if you stay longer than 1 years.
Rent vs Buy: The Ultimate Dilemma
The decision to rent or buy a house is one of the biggest financial decisions you'll make. It involves comparing the unrecoverable costs of renting (rent payments) against the unrecoverable costs of buying (interest payments, maintenance, taxes, etc.).
What is the Break-Even Point?
The break-even point is the year when the net cost of buying a home (Total Payments - Accumulated Equity) becomes lower than the total cost of renting over the same period. If you plan to stay in the home longer than the break-even period, buying is mathematically the better financial choice.
Example
If a ₹50,000/month rent grows 5% a year, versus a home loan EMI on a ₹80 lakh property, the break-even point might land around year 7-9 depending on down payment, loan rate, and expected home appreciation.
Common Use Cases
- Deciding whether to buy a home or keep renting based on how long you plan to stay.
- Comparing the opportunity cost of a down payment against continued renting.
FAQs
Does this account for home maintenance and property tax?
The calculator focuses on the core EMI-vs-rent and equity comparison — ongoing costs like maintenance, property tax, and insurance add to the true cost of owning and aren't included by default.