About the Rent vs Buy Calculator
Compare the total cost of buying vs renting a home over 20 years. Includes property appreciation, investment returns, and EMI calculations. Understanding how this works can significantly improve your financial planning. This tool is designed to provide you with the most accurate and up-to-date calculations required for your specific needs.
The Mathematical Formula
How to use this calculator?
Enter Property Details
Input property price, down payment %, loan rate, and tenure.
Enter Rent Details
Input current monthly rent and annual rent increase.
Set Growth Rates
Enter expected property appreciation and investment return rates.
Compare
See which option is financially better with savings amount.
Frequently Asked Questions (FAQs)
Q. What assumptions does this use?
It compares buying (EMI + down payment opportunity cost) vs renting (growing rent + investing EMI-rent difference).
Q. When is renting better?
When your rent is much lower than EMI and you can earn high investment returns (>12%) on the difference.
Disclaimer: This tool is provided for general utility and informational purposes only. While we strive for accuracy, we make no guarantees regarding the results. Please verify the outputs before using them for any critical applications.