Reviewed by Artha Research·Last updated 8 April 2026
Rent vs Buy Calculator
Model the financial trade-off between renting and purchasing a home by comparing net worth after your expected stay period.
Inputs
The recommendation depends most on your stay period and how expensive owning is relative to rent.
Net-worth gap after your stay
-₹59.3L
Renting looks stronger
Either monthly cost or projected wealth comes out better on the rent-and-invest path here.
Keep renting, invest the difference, and revisit when the rent-to-price ratio shifts.
Monthly EMI
₹83,045
Buyer net worth
₹1.1Cr
Estimated after your stay period.
Renter net worth
₹1.7Cr
Assumes the cost gap is invested at your expected return.
Total rent paid
₹40.1L
Total ownership cost
₹1.3Cr
Net worth over time
Year-by-year comparison of the buying vs renting path.
Benchmarks
Buy vs Rent
-35.0%You
₹1.1Cr
Benchmark
₹1.7Cr
Buying costs much more per month than renting
A large EMI gap reduces your ability to invest the difference and erodes the case for buying.
EMI vs rent
137.0%
Renting and investing finishes ahead
After modelling appreciation, rent escalation, and disciplined investing of the gap, the renter has more wealth at the end.
Renter's lead
₹59.3L
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
At a glance
- What it does
- Compares the net worth of a renter vs a buyer over your expected stay period, accounting for property appreciation, rent escalation, and investment returns on the down payment gap.
- Breakeven horizon
- In Indian metros, buying typically beats renting only beyond 7-10 years of stay; shorter horizons favour renting.
- Typical verdict flip
- At ₹1.2 Cr home price with ₹35k rent and ₹25 L down payment, buying beats renting around year 8 at typical growth assumptions.
- Best used for
- Settling the big housing question when you know your stay horizon. Pair with the affordability calculator before acting.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Buy case tracks EMI outflows, maintenance, closing costs, property appreciation, and home equity.
- Rent case tracks rent escalation and invests the down payment plus any monthly cost difference.
- Decision is based on the net worth gap after the stay period, not just monthly payment comparison.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Property appreciation and portfolio returns are estimates and can vary widely.
- The tool assumes disciplined investing of savings in the rent scenario.
- Emotional and lifestyle value of owning are not priced into the verdict.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Why can renting beat buying even when rent looks expensive?
Buying comes with hidden carrying costs and a large upfront capital lock-in. If your stay is short or the rent-to-price ratio is favourable, renting can leave you richer.
When does buying usually become stronger?
Buying improves when you plan to stay longer, have a solid down payment, and the home’s long-term cost is close to or below the cost of renting plus investing.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
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