Rent vs Buy Calculator: Making Informed Housing Decisions

The rent vs buy decision is one of the most significant financial choices you'll make, involving complex factors like monthly costs, long-term equity buildup, tax benefits, maintenance expenses, and opportunity costs. A rent vs buy calculator helps you compare the total costs of renting versus buying a home over time, accounting for down payments, mortgage interest, property appreciation, maintenance, property taxes, and the opportunity cost of your down payment if invested elsewhere.

Key Factors: When renting, you pay monthly rent with no equity buildup, but you avoid maintenance costs, property taxes, and the opportunity cost of a large down payment. When buying, you build equity over time, benefit from property appreciation, and may receive tax deductions, but you pay mortgage interest, maintenance (1-2% of home value annually), property taxes, insurance, and lose the opportunity to invest your down payment elsewhere. The break-even point depends on how long you plan to stay, local rent-to-price ratios, interest rates, and expected property appreciation.

Example: If you rent for ₹20,000/month vs buying a ₹50 lakh home with a 20-year loan at 8% interest, your monthly EMI would be approximately ₹41,821. However, after 20 years, the renter has nothing while the buyer owns a ₹50 lakh asset (plus appreciation). Our calculator factors in rent increases, property appreciation, maintenance costs, tax benefits, and opportunity costs to show you the true long-term financial impact of each option, helping you make an informed decision based on your specific situation and timeline.