Renting is often dismissed as wasting money, while buying is seen as building equity. However, buying incurs high transaction fees, property taxes, interest costs, and maintenance. Compare both paths to see the true winner.
/
/Rent vs Buy Decision
Rent vs Buy Decision
Compare financial outcomes of renting a property vs. buying with a mortgage over 30 years. If buying wins out, use our mortgage calculator to work out the exact monthly payment, including taxes, insurance, and PMI.
Rent vs Buy Decision
Renting Rates
Buying Rates
Calculation Output
OPTIMAL SELECTION
Renting portfolio Worth₹0
Buying Property Asset Value₹0
Frequently Asked Questions (FAQ)
Is it always better to buy than rent?+
What costs do people usually forget when comparing renting vs buying?+
Does renting and investing the difference beat buying?+
What Is the Rent vs Buy Decision Calculator?
Compare the long-term financial costs of renting a home against buying a property to decide which path makes sense for you.
How to Use This Calculator
- Step 1: Enter your Home Price
- Step 2: Enter your Monthly Rent
- Step 3: Enter your Annual Rent Escalation (%)
- Step 4: Enter your Home Value Growth (%)
- Step 5: Enter your Mortgage Rate (%)
- Step 6: Enter your Mortgage Tenure (Years)
- Step 7: Review the instant results and the visual breakdown chart below
- Step 8: Adjust any value to compare scenarios, and download the full report as a PDF
Example Calculation: Typical Inputs for the Rent vs Buy Decision Calculator
This table shows a realistic example calculation based on standard parameters. Enter your custom numbers in the sliders above to compare results.
| Parameter | Sample Value |
|---|---|
| Home Price | ₹60,00,000 |
| Monthly Rent | ₹18,000 |
| Annual Rent Escalation (%) | 7 |
| Home Value Growth (%) | 6 |
| Mortgage Rate (%) | 8.5% |
| Mortgage Tenure (Years) | 20 |
Rent vs Buy: The Ultimate Financial Duel
Mathematical Formula:
Computes rent cash outflows invested vs buying down payments, mortgage EMIs, maintenance, and final home asset values over a 30-year span