How this rent vs buy calculator works
The model estimates loan payments and remaining balance, home value after appreciation, ownership costs, rent increases and investment growth on cash-flow differences.
Worked example
Compare an ₹80 lakh home with a ₹16 lakh down payment against ₹35,000 monthly rent over 10 years using editable rate, cost and growth assumptions.
Assumptions
- Home appreciation, rent growth and investment returns stay constant.
- Purchase costs and maintenance follow the entered percentages.
- The renter invests eligible upfront and monthly cash-flow differences.
- The loan follows a monthly reducing-balance calculation.
Limitations
- Property taxes, brokerage, renovation, selling costs and tax benefits may differ.
- Lifestyle stability and location value are not financial inputs.
- Future property and market returns cannot be predicted.
Frequently asked questions
What does rent vs buy compare?
It compares modeled owner equity with the renter's modeled invested savings.
Does lower EMI always mean buying wins?
No. Down payment, costs, appreciation, rent and investment returns also matter.
Are tax benefits included?
No. Eligibility and tax regimes vary.
Does it include maintenance?
Yes, using the annual percentage entered.
Why invest the renter's savings?
A fair comparison accounts for upfront and monthly cash not used to own the home.
Can appreciation be negative?
The current interface focuses on non-negative planning assumptions.
Is this a recommendation?
No. It is a simplified scenario comparison.