Rent vs Buy Calculator

Make a data-driven decision. Compare the long-term wealth impact of buying a home on loan versus renting and investing the difference.

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How does this calculator work?

This tool simulates your net wealth over a period of time (e.g., 20 years) for two scenarios:

  • Buying: We calculate the cost of the loan (EMI), down payment, and maintenance, while accounting for tax benefits under Section 24(b) and 80C. The final wealth is the property value minus any outstanding loan.
  • Renting: We assume you pay rent (increasing with inflation) and invest the money you saved (Down Payment + difference between EMI and Rent) into an investment instrument like Mutual Funds. The final wealth is your investment corpus.