Loans & interest
Rent vs Buy Calculator
అద్దె లేదా సొంత ఇల్లు కాలిక్యులేటర్
Buy a home on a loan or rent and invest the difference: which leaves you richer, and when buying catches up.
Your result ఫలితం
Buying leaves you richer by కొంటేనే లాభం
4.74 lakh rupees after 20 years
- If you buy: net worthకొంటే
- ₹1,60,35,677
- If you rent and investఅద్దెకుంటే
- ₹1,55,61,921
- Buying catches upసమానమయ్యే ఏడాది
- In year 15
- Cash needed to buy nowఇప్పుడు కావాల్సిన నగదు
- ₹13,75,000
- EMI and upkeep vs rent, nowఈఎంఐ vs అద్దె
- ₹36,796 vs ₹15,000
Money spent and gone in 20 years: rent ₹59,51,872; for the buyer, interest, stamp duty and upkeep ₹56,25,743.
Year by year ఏడాదివారీగా
| Year | Rent a month | Home value | Loan left | If you buy | If you rent | Ahead |
|---|---|---|---|---|---|---|
| 1 | ₹15,000 | ₹53,00,000 | ₹39,20,391 | ₹13,79,609 | ₹17,56,012 | Rent +₹3,76,403 |
| 2 | ₹15,750 | ₹56,18,000 | ₹38,33,745 | ₹17,84,255 | ₹21,59,734 | Rent +₹3,75,479 |
| 3 | ₹16,538 | ₹59,55,080 | ₹37,39,440 | ₹22,15,640 | ₹25,87,610 | Rent +₹3,71,970 |
| 4 | ₹17,364 | ₹63,12,385 | ₹36,36,800 | ₹26,75,585 | ₹30,41,181 | Rent +₹3,65,596 |
| 5 | ₹18,233 | ₹66,91,128 | ₹35,25,087 | ₹31,66,041 | ₹35,22,093 | Rent +₹3,56,052 |
| 6 | ₹19,144 | ₹70,92,596 | ₹34,03,500 | ₹36,89,095 | ₹40,32,105 | Rent +₹3,43,010 |
| 7 | ₹20,101 | ₹75,18,151 | ₹32,71,166 | ₹42,46,985 | ₹45,73,096 | Rent +₹3,26,111 |
| 8 | ₹21,107 | ₹79,69,240 | ₹31,27,134 | ₹48,42,106 | ₹51,47,075 | Rent +₹3,04,969 |
| 9 | ₹22,162 | ₹84,47,395 | ₹29,70,372 | ₹54,77,023 | ₹57,56,187 | Rent +₹2,79,164 |
| 10 | ₹23,270 | ₹89,54,238 | ₹27,99,753 | ₹61,54,486 | ₹64,02,727 | Rent +₹2,48,241 |
| 11 | ₹24,433 | ₹94,91,493 | ₹26,14,053 | ₹68,77,440 | ₹70,89,149 | Rent +₹2,11,709 |
| 12 | ₹25,655 | ₹1,00,60,982 | ₹24,11,939 | ₹76,49,044 | ₹78,18,079 | Rent +₹1,69,035 |
| 13 | ₹26,938 | ₹1,06,64,641 | ₹21,91,959 | ₹84,72,682 | ₹85,92,323 | Rent +₹1,19,641 |
| 14 | ₹28,285 | ₹1,13,04,520 | ₹19,52,536 | ₹93,51,984 | ₹94,14,888 | Rent +₹62,904 |
| 15 | ₹29,699 | ₹1,19,82,791 | ₹16,91,949 | ₹1,02,90,842 | ₹1,02,88,988 | Buy +₹1,854 |
| 16 | ₹31,184 | ₹1,27,01,758 | ₹14,08,329 | ₹1,12,93,429 | ₹1,12,18,067 | Buy +₹75,363 |
| 17 | ₹32,743 | ₹1,34,63,864 | ₹10,99,640 | ₹1,23,64,224 | ₹1,22,05,809 | Buy +₹1,58,414 |
| 18 | ₹34,380 | ₹1,42,71,696 | ₹7,63,665 | ₹1,35,08,030 | ₹1,32,56,164 | Buy +₹2,51,867 |
| 19 | ₹36,099 | ₹1,51,27,998 | ₹3,97,994 | ₹1,47,30,004 | ₹1,43,73,358 | Buy +₹3,56,646 |
| 20 | ₹37,904 | ₹1,60,35,677 | ₹0 | ₹1,60,35,677 | ₹1,55,61,921 | Buy +₹4,73,757 |
How rent and buy are compared
Both choices spend the same each month. The buyer pays the down payment and stamp duty now, then the EMI and the upkeep (maintenance and property tax). The renter pays rent and invests the rest: the cash the buyer put down on day one, and each month the EMI and upkeep beyond the rent. If rent ever costs more (after the loan is repaid, say), the buyer invests the difference instead. After the years you choose:
buyer = home value − loan left − cost of selling + buyer's investments
renter = renter's investments
Rent and the home's value rise once a year, upkeep is a share of the value, and investments grow at the return you enter, every month.
Example: a ₹50,00,000 home with 20% down is ₹13,75,000 in cash (with stamp duty) and an EMI of ₹34,713, against a rent of ₹15,000. After 20 years, when the loan is repaid, with rent rising 5% a year and the home's value 6%, the buyer is worth ₹1,60,35,677 and a renter who invests the difference at 8% has ₹1,55,61,921: buying leads by ₹4,73,757, though renting is ahead until year 15. At 10%, nearer what equity funds have earned over long periods, renting leads by ₹51,19,049. If the same home rents for ₹25,000, buying leads by ₹87,94,760, though renting is ahead until year 3.
Good to know
- Renting wins on paper only if the difference really is invested, every month, for years. Spent instead, buying wins: the EMI is forced saving.
- When a year's rent is a small share of the price (2% to 3%, common in Indian cities), renting and investing tends to come out ahead unless home values rise fast. A higher rent tilts it towards buying.
- Stamp duty and registration (about 7.5% in Andhra Pradesh and Telangana) are spent on day one: buying for a few years rarely pays.
- Tax is left out: home loan deductions under the old regime, capital gains tax when a home or an investment is sold, and tax on returns. So are the rental deposit and the cost of moving.
- Not everything is money: a home of your own gives security and freedom to make it yours; renting keeps you free to move for a job or a school.
Questions
Why does renting often win on paper?
Because rent is usually a small share of a home's price, while the buyer's money (down payment, stamp duty, interest) is tied up in a home growing more slowly than a long-term investment is assumed to. Change the returns and the rise in value to see how much the answer depends on them.
What does "buying catches up" mean?
The year the buyer's net worth draws level with the renter's and stays ahead. The buyer usually starts behind, having spent the stamp duty, and gains as the loan is repaid and the home's value rises.
Which return should I use?
What the renter would really earn: about 7% in bank FDs, more in equity mutual funds over long periods but with ups and downs. Try both and see whether the answer changes.
What next? తర్వాత ఏం చూడాలి
See all calculators →Results are estimates for planning, at the rates you enter. Check exact figures with your bank, fund house or tax adviser before you decide.
