Rent vs Buy Calculator
Compare buying a home with a loan against renting and investing the difference -- year by year, with every assumption shown clearly. Every calculation runs in your browser.
Buying
Purchase costs cover stamp duty, registration and similar one-time charges. The loan amount is the price minus your down payment.
Renting
Assumptions
Investment return applies to money a renter does not spend on buying (the down payment, purchase costs and any monthly saving), and to a buyer's savings once their monthly costs fall below the rent.
Results
Result
Buyer's net worth
Renter's net worth
Monthly EMI
Upfront cost of buying
Total rent paid
Total loan interest paid
Assumptions used
Year-wise comparison
Net worth: buyer = property value − loan left − selling costs + buyer's investments; renter = renter's investments. Figures are not adjusted for inflation.
How this calculator works
The calculator simulates both paths month by month. Buying: you pay the down payment and purchase costs (stamp duty, registration and similar) upfront, then the EMI until the loan is repaid plus maintenance, while the property's value grows at your appreciation rate. Renting: you pay rent, which rises every year, and invest the money a buyer would have spent upfront plus any monthly difference between the buyer's costs and your rent. Investments grow at your assumed return, compounded monthly. Each year the calculator compares net worth -- the buyer's property value minus the outstanding loan and selling costs, plus any investments, versus the renter's investments -- and shows the year buying overtakes renting, if it does. Everything runs in your browser.
Is it better to rent or buy a house?
It depends on the numbers and on things no calculator can measure -- stability, flexibility, family plans and how long you will stay. Financially, buying tends to win when property prices grow faster, rents are high compared with the price, loan rates are low and you stay for many years. Renting and investing tends to win when investment returns are high and rent is low relative to the property price.
Is my data sent to any server?
No. Every calculation runs entirely in your browser. Nothing you enter -- prices, loan details, rent or assumptions -- is ever sent to our servers or stored anywhere.
How does the comparison stay fair?
Both scenarios spend the same money every month. The renter invests the down payment and purchase costs instead of paying them, and each month also invests whatever the buyer spends on EMI and maintenance beyond the rent. If rent ever becomes higher than the buyer's costs -- usually after the loan is repaid -- the buyer invests the difference instead.
What does net worth mean here?
For the buyer it is the property's value after selling costs, minus the loan still owed, plus any investments. For the renter it is the value of their investments. Comparing the two shows which path leaves you wealthier at each point in time under your assumptions.
What is not included?
Income-tax deductions on home-loan interest and principal, capital-gains tax, loan processing fees, rent deposits, brokerage and moving costs are not included. You can approximate one-off costs through the purchase-cost and selling-cost percentages.
Disclaimer: This calculator is an educational estimate based entirely on the assumptions you enter; it is not personal financial, investment, tax or real-estate advice. Property prices, rents, interest rates and investment returns change over time and are not guaranteed, and the decision to rent or buy also depends on personal factors this tool cannot measure. Consider speaking with a qualified financial adviser before making a decision. See our Disclaimer and Terms of Use for more detail.