Rent vs Buy Calculator

You are richer by ₹92.59 L if you RENT

Over 20 years, your net wealth would be ₹2.92 Cr vs ₹1.99 Cr.

If you BUY a Home

₹

₹75.00 Lac

₹

₹15.00 Lac

20.0% of Price

If you RENT a Home

₹

₹20,000

20 Y

Net Wealth Projection

Buy Scenario
₹1.99 Cr
Property Value after 20y
Loan Paid:₹1.20 Cr
Asset Value:₹1.99 Cr
Rent Scenario
₹2.92 Cr
Investment Value after 20y
Rent Paid:₹79.36 L
Liquid Assets:₹2.92 Cr

Note: This calculation considers tax benefits on Home Loan (Sec 24b & 80C) and assumes the difference between EMI and Rent is disciplinedly invested in an instrument giving 12% returns.

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Home Loan EMI

Calculate monthly EMI

Balance Transfer

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Lumpsum

One-time investment

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.