Real Estate Decision Tool

Rent vs. Buy Calculator

Compare long-term total costs and asset growth to determine whether buying or renting makes financial sense.

Financial Recommendation

Buying is Financially Advantageous

Over 20 years, buying generates greater net wealth accumulated.

Net Advantage

₹ 14.5 Lakh

Property Buying Details

Property Cost ₹ 50,00,000

₹25 L ₹50 L ₹75 L ₹1 Cr

Down Payment (%) 20 %

Loan Interest Rate (p.a.) 8.5 %

Tenure / Analysis Period 20 Years

Property Appreciation (p.a.) 5.0 %

Renting & Investment Details

Initial Monthly Rent ₹ 20,000

₹12 K ₹20 K ₹30 K ₹50 K

Annual Rent Hike (%) 7.0 %

Investment Return (FD/MF) 9.0 %

Maintenance Cost (Monthly) ₹ 3,000

Financial Breakdown Comparison

Parameter	Buying Option (₹)	Renting Option (₹)
Initial Outlay (Down Payment / Deposit)	₹ 10,00,000	₹ 2,00,000
Monthly Payment (First Year)	₹ 34,700 (EMI)	₹ 20,000 (Rent)
Total Cash Paid over 20 Years	₹ 90,28,000	₹ 98,39,000
Future Asset Value at End of Tenure	₹ 1,32,66,000	₹ 1,18,12,000

Financial Calculators

Finance

Home Loan EMI Loan Eligibility HRA Tax Calculator Rental Yield Calculator

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Frequently Asked Questions

Understanding the dynamics of renting versus buying a house.

When you rent, you do not pay a heavy lump sum down payment or monthly home loan EMI. If you invest that saved initial down payment and monthly EMI surplus into high-yield mutual funds or equities, that invested pool grows significantly over 15-20 years.

Real estate typically appreciates in value over time (e.g., 5-8% per year). At the end of a 20-year loan tenure, your property is fully paid off and worth significantly more than your initial purchase price.