Rent vs Buy Calculator
Find out whether buying a home or renting and investing the difference leaves you richer. Enter the home’s price, the rent for a similar home and how many years you plan to stay.
Loan, costs and growth assumptions
Renting and investing the difference leaves you about ₹39.20 lakh richer after 20 years, as long as you actually invest it.
Net worth is before tax and selling costs. The renter’s result assumes the money not spent on buying is invested every month at the return you enter.
Year-by-year net worth
| Year | Buy | Rent + invest |
|---|---|---|
| 1 | ₹31.49 lakh | ₹39.44 lakh |
| 5 | ₹61.53 lakh | ₹73.83 lakh |
| 10 | ₹1.10 Cr | ₹1.30 Cr |
| 15 | ₹1.76 Cr | ₹2.04 Cr |
| 20 | ₹2.65 Cr | ₹3.05 Cr |
How the comparison works
The calculator compares two paths over the same years. Buying: you pay the down payment plus stamp duty and registration, then the EMI and upkeep, and end up owning a home worth more than you paid, minus any loan left. Renting: you invest the money a buyer would have paid up front, pay rent, and each month invest the difference between the buyer’s costs and your rent. The better choice is the one with the higher net worth at the end.
Worked example: ₹1 crore flat over 20 years
25% down payment (the RBI minimum above ₹75 lakh), home loan at 8.5% for 20 years (EMI ₹65,087), 7% stamp duty and registration, upkeep 0.5% of value a year, rent rising 5% a year:
| Scenario | Buy | Rent and invest | Buying pulls ahead |
|---|---|---|---|
| Rent ₹30,000, prices +5%, investments 8% | ₹2.65 crore | ₹3.05 crore | Not within 25 years |
| Same, prices +6% | ₹3.21 crore | ₹3.08 crore | Year 14 |
| Rent ₹40,000, prices +5%, investments 8% | ₹2.65 crore | ₹2.21 crore | Year 9 |
| Rent ₹30,000, prices +5%, investments 10% | ₹2.65 crore | ₹4.19 crore | Not within 25 years |
Small changes in three numbers decide the answer: the rent compared with the price, how fast home prices rise, and what the renter earns on the money they invest.
When buying wins, and when renting wins
- Buying tends to win when rent is above about 4% of the price a year, home prices in your area rise faster than your investments would, or you plan to stay 15 years or more.
- Renting tends to win when rent is about 3.5% of the price or less (Delhi was 3.2% in mid-2026), you may move within 5–7 years, or you will reliably invest the money you save.
- The renter’s advantage exists only if the difference is actually invested every month.
For the full reasoning, including down payment rules and the costs of buying, read Rent vs Buy a House in India.
When to use a different calculator
- Working out the EMI on the home? Use the Home Loan EMI Calculator.
- Checking how much the bank will lend you? Use the Home Loan Eligibility Calculator.
- Planning to invest the difference monthly? Use the SIP Calculator.
