Your numbers
Example scenarioAdjust assumptionsTenure 20 years · returns 7% · rent growth 5%
Assumptions are examples, not current quoted lending rates or verified local transaction charges.
See result ↓Your result
Example scenarioEstimated difference after 10 years
₹21.9 lakh
Excludes taxes and tax benefits; results depend on your assumptions.
Renting and investing is ahead by ₹21.9 lakh in this scenario.
The comparison uses equal cash: the buyer owns a home and its equity; the renter invests the avoided upfront cash and any monthly savings. It does not compare total rent with total EMIs as if the loan principal were an expense.
Buyer net wealth, after estimated sale costs
₹1.03 Cr
₹1,02,81,096
Renter investment balance
₹1.25 Cr
₹1,24,67,908
Starting EMI
₹71,978
Per month, on the loan assumed
Remaining loan at horizon
₹56.8 lakh
₹56,82,071
Net wealth over time
- Buying (net wealth) (solid line, circles)
- Renting and investing (dashed line, squares)
View exact figures
| Year | Buying (net wealth) | Renting and investing |
|---|---|---|
| 0 | ₹18,00,000 | ₹28,00,000 |
| 1 | ₹24,39,817 | ₹35,70,659 |
| 2 | ₹31,18,188 | ₹43,79,441 |
| 3 | ₹38,37,655 | ₹52,28,224 |
| 4 | ₹46,00,949 | ₹61,18,978 |
| 5 | ₹54,10,995 | ₹70,53,767 |
| 6 | ₹62,70,939 | ₹80,34,760 |
| 7 | ₹71,84,155 | ₹90,64,228 |
| 8 | ₹81,54,271 | ₹1,01,44,555 |
| 9 | ₹91,85,187 | ₹1,12,78,241 |
| 10 | ₹1,02,81,096 | ₹1,24,67,908 |
Home-price growth is 5% a year. The buttons change that assumption in your numbers. Home prices, rent and investment returns can change. Try different assumptions; lifestyle, flexibility and certainty of tenure matter too.
Looking at a specific home? You can check which of your numbers carry over before you start.
About this calculator
Compare the estimated wealth you would hold after a number of years if you bought, against renting a comparable home and investing what you avoid spending. The result depends heavily on your assumptions, so every one is editable.
How to use it
- Enter the price, the rent for a comparable home, your down payment and how many years you want to compare.
- Review the loan, growth and return assumptions.
- Read the difference and the chart, and try the home-growth buttons to see how sensitive the answer is.
What is not included
- Income tax, capital-gains tax and tax deductions or benefits.
- Rental security deposits, delayed possession, pre-EMI and construction-linked payments.
- Any claim that home prices, rent or returns will follow your assumptions.
Method and assumptions
- Both paths get the same total cash. The buyer pays the down payment and costs and the EMI plus owner costs; the renter invests the avoided upfront cash and any monthly saving.
- Rent grows, owner costs grow and the home value grows at the rates you enter. Investments compound monthly at the return you enter.
- Buyer net wealth = home value after estimated sale costs − remaining loan + any invested savings. Renter net wealth = the invested balance.
- When the loan ends, the buyer’s monthly outflow falls to owner costs only and the difference is invested.
The figures are examples you can change, not current quoted lending rates or verified local transaction charges.
Common questions
Why compare wealth rather than EMI against rent?
Part of each EMI repays the loan and builds equity, so it is not simply a cost like rent. Comparing the wealth each path leaves you with, under the same cash budget, treats both fairly.
What investment return is assumed?
The default is an example, not a forecast. Change it to match your own view; the result moves noticeably with it.
Does it include taxes?
No. It excludes taxes and tax benefits, and results depend on your assumptions.
What happens after the loan is repaid?
The buyer no longer pays an EMI, only owner costs. If that is lower than rent, the difference is invested from then on.
Can the answer change with home-price growth?
Yes, a lot. Use the −2 and +2 percentage-point buttons under the chart to see how sensitive it is; they change the actual growth input.
Does it cover under-construction homes?
No. It assumes you can occupy immediately with a fully disbursed loan, so it is not a model of under-construction cash flows.