Rent vs Buy Calculator – Compare monthly costs

This tool helps agents and their clients see which option – buying a home or renting – leaves more money after a chosen period. It works on the phone, uses the numbers you enter and shows the final amount for both buyer and renter without any external data.

How to use the calculator

Enter the property value ₹75,00,000 and down payment ₹15,00,000.
Fill in the loan rate 8.5% and the loan tenure 20 years. The calculator works out the EMI (₹52,069).
Provide the current monthly rent ₹25,000 and the expected yearly increase 5%.
Set the assumed property appreciation 5% and the investment return on saved money 8%.
Choose the comparison period 10 years. The result updates as you type and shows the buyer’s final amount ₹80,17,080 and the renter’s final amount ₹86,55,175, plus total rent paid ₹37,73,368.

Open the calculator: Rent vs buy calculator

Worked example

Input	Value
Property value	₹75,00,000
Down payment	₹15,00,000
Loan rate (per year)	8.5%
Rent per month now	₹25,000
Rent increase per year	5%
Assumed property value change per year	5%
Assumed return on savings	8%
Compared over	10 years

Result	Value
EMI	₹52,069
Buyer has at the end	₹80,17,080
Renter has at the end	₹86,55,175
Rent paid in total	₹37,73,368

Example inputs (the property value change and return are assumptions — change them and the result can flip); results computed by the calculator’s own code.

How it is calculated

Buy = property value at the end − loan left + money saved; Rent = money invested (down payment, costs and each month’s saving)
Month by month: the buyer pays the EMI and maintenance, the renter pays rent. Whoever pays less that month invests the difference at the return you entered. The renter also invests the down payment and purchase costs from day one.

Buy side: final property value (initial value grown by 5% each year) minus remaining loan balance plus any cash saved from lower monthly outflow. Rent side: total rent paid is subtracted from the initial cash outlay (down payment and purchase costs) and the remaining amount is grown at the investment return 8%. Month‑by‑month the side that spends less invests the difference, which compounds at 8%.

Assumptions

The property value change and the investment return are your own guesses; small changes to them can flip the result.
Fixed loan rate; rent rises once a year; selling costs at the end are not included.
Before income tax: home-loan tax benefits and tax on investment gains are not included. For tax, ask a CA.
This shows numbers only. It is not advice on whether to rent or buy.

When it helps

Use when a buyer asks whether to purchase a property now or continue renting. It is useful for quick client meetings, for comparing different loan rates or rent escalation scenarios. The calculator does not cover selling costs, tax benefits, or loan pre‑payment penalties, so mention that those factors need separate discussion with a CA or financial advisor.

Frequently asked questions

What does this calculator compare?

It shows how much the buyer and the renter have after 10 years by accounting for EMI, rent, maintenance and the money saved each month.

Which inputs are needed?

Enter the property value ₹75,00,000, down payment ₹15,00,000, loan rate 8.5%, rent ₹25,000, rent increase 5%, property appreciation 5% and investment return 8%.

Are taxes or selling costs included?

No. Home‑loan tax benefits and selling costs are not part of the calculation; ask your CA for tax impact.

Can I change assumptions like rent rise or investment return?

Yes, adjust 5% and 8% to see how different scenarios affect the result.

Sources

For estimation only — verify with a professional. Rates and rules vary by state and change over time; last verified on 2026-10-09. This is not legal, tax or financial advice.

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