Rent vs Buy Calculator
Compare the long-term net worth outcome of renting vs buying a home.
Your inputs
Assumes 5% annual rent increases and 6% annual property appreciation. Models renting as investing your down payment plus the EMI-minus-rent difference every month at your expected return — the standard 'opportunity cost' comparison.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Rent vs Buy Calculator
"Rent vs buy calculator India" is one of the most consequential financial searches anyone makes — buying a home is usually the single largest financial decision most Indians make, and "just buy, rent is wasted money" is common advice that isn't always true once you actually run the numbers. This calculator uses the same opportunity-cost method serious financial planners use: it compares your net worth at the end of a chosen time horizon under both scenarios, not just monthly cash outflow.
Buying ties up your down payment in the property and commits you to an EMI, with your payoff being the property's appreciated value at the end. Renting frees up that down payment (and any month where your EMI would exceed your rent) to be invested instead, with your payoff being that investment corpus. This calculator simulates both scenarios month by month — property appreciating at a fixed annual rate, rent increasing annually, and the renter's invested corpus compounding at your expected return — and tells you which path leaves you with a higher net worth at the end. The result depends heavily on your inputs: a large gap between rent and EMI (rent much cheaper) favors renting-and-investing, especially if your expected investment return beats property appreciation, while a small or negative gap (rent close to or above EMI) usually favors buying. Run this with your actual local rent and property price — the 'right' answer varies enormously by city and even by neighbourhood.
How to use this calculator
- Enter your current monthly rent and the property price you're considering.
- Enter your down payment %, loan rate, and time horizon.
- Enter your expected investment return if renting instead.
- See which option leaves you with a higher net worth.
Frequently asked questions
›Is renting always financially worse than buying in India?
No — it depends heavily on the gap between local rent and what the EMI would be, and on investment returns versus property appreciation in your specific market; this calculator is built to show the actual comparison rather than assume one answer.
›What assumptions does this calculator make?
It assumes 5% annual rent increases and 6% annual property appreciation as fixed baseline assumptions, while your loan rate, investment return, and time horizon are all inputs you control.
›Does this account for property taxes, maintenance, or brokerage?
No, this is a simplified opportunity-cost model focused on the core EMI-vs-rent and appreciation-vs-investment trade-off — ongoing property costs (maintenance, society charges, property tax) would tilt the comparison further toward renting if added.
›What if I plan to live in the property forever, not resell it?
The model still works as a net worth comparison even without selling — the property's appreciated value represents your equity in it either way, comparable to the renter's investment corpus.
›Does this factor in the emotional value of owning a home?
No, intentionally — this is purely a financial net worth comparison; stability, customization, and not depending on a landlord are real, non-financial reasons people choose to buy even when renting wins on paper.
Related calculators
Read the full guide
Should You Rent or Buy a Home in India? What the Numbers Say