A model, not a verdict — assumptions are yours

Rent vs buy calculator

Both people spend the same cash each month; the one paying less invests the difference. After your horizon, who ends up with more net worth — the owner (home equity) or the renter (investments)? Computed transparently from your assumptions.

Buying

Property price

Down payment

Stamp duty + registration (%)

State-dependent, typically ~5–8% of price. Not recovered on sale.

Loan rate (% p.a.)

Loan tenure (years)

Maintenance + property tax (₹/month)

Grows at the same annual rate as rent.

Property appreciation (% p.a.)

Renting

Monthly rent

Rent growth (% p.a.)

Security deposit (refundable)

Common

Horizon (years)

How long before you'd sell / re-decide.

Return on invested savings (% p.a.)

Net worth after the horizon

—

	Buyer	Renter
Home value − loan due	—	—
Investments	—	—
Deposit returned	—	—
Net worth	—	—

Show the math

Model: both sides spend max(owner outflow, rent) monthly; the cheaper side invests the difference at your expected return (monthly compounding). The buyer's upfront outgo is down payment + stamp/registration; the renter instead invests that money (minus the deposit) on day one. Selling costs, home-loan tax breaks and rent HRA benefits are not modelled — they can shift the result.

What this model counts

Buyer: pays down payment + stamp duty upfront, then EMI + maintenance monthly (maintenance escalating annually). Gains: home appreciation and loan paydown. After the loan ends, the buyer's monthly cost drops to maintenance alone — the model then invests the buyer's savings too.
Renter: pays rent (escalating annually) and a refundable deposit, and invests everything the buyer would have spent extra — starting with the down payment on day one.
Not modelled: Section 24(b)/80C tax breaks on the loan, HRA benefit on rent, brokerage on sale, vacancy or society transfer charges. List your own — the point of the model is that every assumption is visible and editable.

For information only — not financial advice. Housing decisions involve much more than arithmetic (stability, mobility, family). This page computes net worth under your assumptions; it does not tell you what to do.