Rent vs Buy Calculator
Whether buying a home or renting and investing the difference leaves you better off.
Buying
Renting
Renting leaves you about ₹2,31,54,084 better off after 20 years.
Renting stays ahead for all 20 years at these assumptions.
Net worth year by year
| Year | If you buy | If you rent | Loan left |
|---|---|---|---|
| 1 | ₹26,70,837 | ₹35,94,513 | ₹78,40,782 |
| 2 | ₹33,81,923 | ₹45,69,725 | ₹76,67,490 |
| 3 | ₹41,35,842 | ₹56,33,443 | ₹74,78,881 |
| 4 | ₹49,35,353 | ₹67,94,256 | ₹72,73,600 |
| 5 | ₹57,83,412 | ₹80,61,621 | ₹70,50,175 |
| 6 | ₹66,83,177 | ₹94,45,949 | ₹68,07,000 |
| 7 | ₹76,38,029 | ₹1,09,58,703 | ₹65,42,332 |
| 8 | ₹86,51,586 | ₹1,26,12,510 | ₹62,54,269 |
| 9 | ₹97,27,723 | ₹1,44,21,276 | ₹59,40,744 |
| 10 | ₹1,08,70,589 | ₹1,64,00,321 | ₹55,99,506 |
| 11 | ₹1,20,84,631 | ₹1,85,66,524 | ₹52,28,106 |
| 12 | ₹1,33,74,612 | ₹2,09,38,484 | ₹48,23,877 |
| 13 | ₹1,47,45,640 | ₹2,35,36,698 | ₹43,83,918 |
| 14 | ₹1,62,03,191 | ₹2,63,83,758 | ₹39,05,071 |
| 15 | ₹1,77,53,141 | ₹2,95,04,566 | ₹33,83,898 |
| 16 | ₹1,94,01,792 | ₹3,29,26,573 | ₹28,16,659 |
| 17 | ₹2,11,55,908 | ₹3,66,80,047 | ₹21,99,280 |
| 18 | ₹2,30,22,753 | ₹4,07,98,360 | ₹15,27,331 |
| 19 | ₹2,50,10,126 | ₹4,53,18,312 | ₹7,95,988 |
| 20 | ₹2,71,26,403 | ₹5,02,80,487 | ₹0 |
How the comparison works
If you buy, you pay the down payment and stamp duty, then the EMI and upkeep; your wealth is the home's value minus the loan still owed. If you rent, you invest the down payment and stamp duty instead, and each month invest whatever buying would have cost beyond the rent (if rent costs more, the buyer invests the difference). Both sides earn the same investment return.
Not included: home-loan tax benefits, the cost of selling the home, moving costs, and the non-money reasons to own or rent. The result is very sensitive to property price growth and investment returns, so try a few values.
Estimates only, not financial advice. Your bank's or fund's actual figures can differ (rounding, fees, taxes, date conventions). Calculated in your browser; nothing you enter is sent anywhere.