What is a Rent vs Buy Calculator?
A rent-versus-buy comparison is incomplete if it only compares monthly rent with EMI. Buying ties up a down payment and transaction costs but creates property equity. Renting can leave more money available to invest, but rent may rise over time.
This calculator tracks both sides: property value and outstanding loan for the buyer, and invested upfront/monthly differences for the renter. The output is a scenario under your assumptions, not a recommendation.
Net-wealth comparison
The model compounds property appreciation annually, rent annually and the renter investment corpus monthly. Maintenance, property tax and transaction costs are explicit inputs rather than hidden assumptions.
The opportunity cost is not optional
A buyer uses cash for the down payment and transaction costs. A fair comparison gives the renter’s unused capital a return assumption rather than treating it as if it disappears.
Small assumption changes can reverse the result
Property appreciation, investment return, rent growth and how long you stay are powerful inputs. A single “rent vs buy” answer without showing those assumptions is not decision support.
Frequently asked questions
Does this tell me whether I should buy?
No. It compares financial outcomes under selected assumptions. Stability, location control, mobility and non-financial preferences still matter.
Why include selling cost?
Owner wealth is most comparable to a liquid investment corpus when the property value is reduced by a realistic exit cost.
Does it include tax benefits?
No. Use the Home Loan Tax Benefit Calculator separately because tax treatment depends on regime, occupancy and eligibility.