When does buying make more sense than renting?

Buying typically wins when you plan to stay in the home for at least 7-10 years, mortgage interest rates are competitive, and rental yields in your city are high relative to mortgage costs. Renting is often better for mobility, lower upfront risk, and maximizing equity compounding in liquid markets.

Rent vs. Buy Calculator

Buying Scenario

Property Value

₹

Down Payment

₹

Loan Term (Years)

Yrs

Interest Rate

Property Tax (% of value)

Annual Maintenance

₹

Home Appreciation Rate

Renting Scenario

Monthly Rent

₹

Annual Rent Increase

Comparison Period

Over how many years?

Yrs

Analysis Result

After 10 years, the better option is:

Renting

Total Cost of Buying

₹0

Total Cost of Renting

₹0

Guide & Methodology

About the Rent vs. Buy Calculator

Perform an in-depth financial comparison between buying a home with a mortgage versus renting and investing the down payment surplus.

What this calculator does

Compares total cash outflows, net equity accumulation, property appreciation, and opportunity cost of capital over a 5 to 30 year horizon.
Factors in property taxes, maintenance costs, insurance, registration fees, and home loan tax deductions.
Considers rental inflation and the compounding returns of investing down payment savings in an equity index.

How it Works & Key Inputs

Step 1

Home Purchase Costs

Input property purchase price, down payment, loan tenure, interest rate, and maintenance.

Step 2

Rental Details

Enter current monthly rent, security deposit, and annual rental inflation rate.

Step 3

Investment Assumptions

Set anticipated real estate appreciation rate and equity market return rate.

Core Calculation Parameters

Property PriceTotal acquisition cost of the home.

Monthly RentInitial monthly rent for an equivalent property.

Equity Investment ReturnExpected annual return if the down payment and monthly savings were invested.

Formula & Calculation Logic

Mathematical Model

Net Wealth (Buy) = Future Property Value - Remaining Debt - Cumulative Ownership Costs | Net Wealth (Rent) = Future Value of Invested Down Payment + Invested Monthly Savings - Cumulative Rent

Net Present Value (NPV) and Opportunity Cost Comparison model.

Variables Breakdown

AppreciationAnnual compounding property price increase

Opportunity CostAlternative returns foregone by locking capital into real estate

Frequently Asked Questions (FAQ)

Disclaimer: This calculator is provided for educational and illustrative purposes only. Actual financial outcomes may vary based on statutory changes, lender terms, fund fees, and prevailing market dynamics.