Rent vs Buy Calculator

Compare renting and investing with buying a home on a loan — which leaves you wealthier after N years.

InstantPrivate — runs in your browserFree, no sign-up

Your details

₹
₹10 L₹10 Cr
%
10%100%
%
0%12%
%
6%14%
yrs
5 yrs30 yrs
₹
₹2K₹5 L
%
0%15%
%
0%15%
%
0%3%
%
0%18%
What the renter earns by investing the down payment and any monthly savings.
yrs
1 yr30 yrs

Result

How to use

  1. 1

    Enter the property price, down payment, loan terms and buying costs.

  2. 2

    Enter the rent for a similar home and your growth assumptions.

  3. 3

    See the wealth of a buyer and a renter after the chosen number of years.

Questions

How does this compare renting with buying?

Both people spend the same each month. The buyer pays the down payment, stamp duty, EMIs and maintenance. The renter invests the down payment and buying costs, pays rent, and invests whatever is left from the buyer's monthly outgo (if the buyer's costs are lower, the buyer invests the difference instead). At the end we compare home equity plus investments against the renter's investments.

What is the price-to-rent ratio?

Property price ÷ yearly rent. In big Indian cities homes often cost 30–40 times a year's rent (rental yield of 2.5–3.5%), which is why renting and investing frequently comes out ahead over 10–15 years.

What does this leave out?

Tax benefits on home loans (old regime only), selling costs, brokerage, and the non-money value of owning your home. Treat the result as a guide, not a final answer.

About this Rent vs Buy tool

Rent vs Buy Calculator — Compare renting and investing with buying a home on a loan — which leaves you wealthier after N years. It is one of 200 free tools on namasivayam.in, made by software engineer Namasivayam Vadivelan for everyday use in India.

Everything is calculated instantly in your browser: nothing you type or upload is sent to any server, there is no sign-up, and it works on mobile and desktop. Enter the property price, down payment, loan terms and buying costs.

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Results are estimates to help you plan. They are not financial, tax or medical advice.