Rent vs Buy Calculator
Compare buying a home against renting a similar one and investing what you would have paid, over the length of the loan.
Rent vs Buy Calculator
Cheaper over the period
Buying
- Net cost of buying-₹80,45,488.03
- Net cost of renting-₹66,04,975.79
- Difference₹14,40,512.24
Works out in your browser. Nothing you type is sent anywhere.
In short: Rent vs Buy Calculator
Over 20 years, buying at ₹60,00,000 costs -₹80,45,488.03 once the home's value at the end is counted, against -₹66,04,975.79 for renting and investing the difference. Buying comes out cheaper here, by ₹14,40,512.24. The result turns on the growth and return rates you assume.
What is Rent vs Buy?
Rent against buy is a comparison of two paths over the same period: owning a home with a loan, or renting and investing the money that would have gone into the purchase.
How is Rent vs Buy calculated?
For buying, add the down payment to every instalment paid, then subtract what the home is worth at the end. For renting, add up the rent as it rises each year, then subtract the pot built by investing the down payment and whatever each month's rent saved against the instalment.
- money outeverything paid along the way on that path
- what you hold at the endthe home's value, or the investment pot
A worked example
| Home price | ₹60,00,000 |
|---|---|
| Down payment | ₹12,00,000 |
| Home loan rate (% a year) | 8.5% |
| Loan tenure (months) | 240 months |
| Rent for a similar home | ₹22,000 |
| Rent rises (% a year) | 7% |
| Home value grows (% a year) | 6% |
| Return if you invest instead (% a year) | 11% |
| Result | |
| Cheaper over the period | Buying |
| Net cost of buying | -₹80,45,488.03 |
| Net cost of renting | -₹66,04,975.79 |
| Difference | ₹14,40,512.24 |
Every figure in this table is produced by the same calculation the tool above runs.
How to use this rent vs buy calculator
- Enter the price, the down payment, and the loan rate and tenure.
- Enter the rent on a similar home and how fast you expect it to rise.
- Enter how fast you expect the property to appreciate.
- Enter what you would earn by investing instead, and read the comparison.
Questions people ask
What does this comparison leave out?
Maintenance, property tax, registration and stamp duty, the rent deposit, and any tax relief on the home loan are all excluded. Those mostly count against buying, except the tax relief. Treat the answer as a starting point and add your own figures for them.
Why does the investment return matter so much?
Because the renting path depends on actually investing the money that was not spent on the home, and compounding it for the whole period. If that money gets spent instead, renting loses badly. The comparison assumes the discipline to invest it every month.
Is buying always better in the long run?
Not always. It depends on the gap between property appreciation and investment returns, and on how long you stay. Buying tends to win over long holdings in areas where prices rise faster than rents, and lose if you move within a few years.
What if I move after a few years?
Buying looks much worse over a short period, because the purchase costs are paid once and the early instalments are almost all interest. If there is a real chance of moving within about five years, test that period here before deciding.
Accuracy and sources
Estimate only. Not financial or tax advice.
Checked by the Daytoolz team on 16 October 2026. How we check our tools.
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