Rent vs Buy Calculator

Modern Rent vs Buy Calculator

Rent vs. Buy Calculator

Smart cashflow analysis to help you decide your future.

The Purchase
Target Property Price
Down Payment 20%
Interest Rate 8.5%
Loan Term 20y
Closing Costs 1.5%
Ongoing Expenses
Property Tax /yr 1%
Maintenance /yr 0.5%
Insurance /yr 0.2%
Monthly HOA 2,000
Rent & Market
Monthly Rent 20,000
Rent Inflation /yr 5%
Home Appreciation 5%
Investment Return 10%
Time Horizon 10y
Selling Costs (Agent Fee) 1%
Analysis Result
Calculating…
Cost to Buy
Net Sunk Cost
Cost to Rent
Net Sunk Cost
Cost Breakdown Over 10 Years
Monthly Mortgage
Down Payment
Total Interest Paid
Maint. & Taxes
Sale Profit (Offset)
Inv. Gains (Offset)
*Calculates opportunity cost of downpayment & monthly savings.

Rent vs Buy Calculator Guide

What is it & Why use it?

Decide whether to rent or buy a house by comparing costs, EMIs, rent payments, and appreciation. This tool helps families and individuals compare the long-term financial implications of both options.

The Logic
Compare: Total Rent Paid vs.
(Down Payment + EMIs + Maint. – Appreciation)
Variables
Rent, EMI, Duration, Property Appreciation
Financial Comparison
Example Calculation

Comparing Rent (₹20k) vs Buy (EMI ₹25k) over 10 years:

Total Rent Cost
₹24,00,000
Net Buy Cost
₹20,00,000
Verdict (Example)
Buying Saves ₹4L
Due to ₹10L Appreciation
Benefits & Use Cases
Informed Decisions

Use data, not just emotion, to decide on your biggest financial commitment.

Long-term Costs

Understand the true cost of ownership including maintenance and interest.

Equity vs Savings

Compare the wealth built through property equity versus saving on rent.

Frequently Asked Questions
Q1: Is renting always cheaper?

Not always. It heavily depends on the local rental yield, property appreciation rates, and loan interest rates.

Q2: Why should I buy instead of rent?

Buying builds an asset (equity) and offers stability, whereas rent is an expense with no return on investment.

Q3: Does location matter?

Yes. High appreciation areas favor buying, while high property cost but low rent areas favor renting.

Q4: Can I include tax benefits?

Yes, tax deductions on home loan principal (80C) and interest (24b) significantly reduce the effective cost of buying.

Authority Sources: InvestopediaNerdWallet