Rent vs buy calculator
The year buying overtakes renting, with the money you tie up counted.
The comparison
Rs
Rs 2.5 crore
Rsa month
Yearly rent is 4.32% of the price.
If you buy
Market assumptions
Renting comes out ahead byRs 45,855,109
Over 10 years buying never catches up on these assumptions.
- Net cost of buyingRs 3,494,201
- Net cost of renting-Rs 42,360,908
- Monthly to ownRs 264,697Against Rs 90,000 to rent
- Cash to get inRs 7,750,000Deposit plus Rs 1,500,000 of costs
- Equity after 10 yearsRs 38,883,018Home worth Rs 5.4 crore
- If you invested insteadRs 57,282,672Growing at 12.0% a year
Net cost over time
- Buying
- Renting and investing
What buying costs you
- Deposit and buying costsRs 7,750,000
- InterestRs 24,728,783
- Capital repaidRs 3,659,893
- Maintenance, tax and insuranceRs 4,889,215
Selling at the end costs Rs 1,349,328.
What renting costs you
- Rent paidRs 14,921,764
- Investment gainRs 49,532,672
Rent starts at Rs 90,000 and reaches Rs 165,461 by the final year.
Year by year
| Year | Home worth | Your equity | Net cost, buying | Net cost, renting |
|---|---|---|---|---|
| Year 1 | Rs 27,000,000 | Rs 8,428,343 | Rs 3,173,025 | -Rs 9,696,368 |
| Year 2 | Rs 29,160,000 | Rs 10,793,827 | Rs 4,064,908 | -Rs 11,881,699 |
| Year 3 | Rs 31,492,800 | Rs 13,363,382 | Rs 4,786,200 | -Rs 14,335,319 |
| Year 4 | Rs 34,012,224 | Rs 16,155,593 | Rs 5,320,996 | -Rs 17,090,136 |
| Year 5 | Rs 36,733,202 | Rs 19,190,871 | Rs 5,651,775 | -Rs 20,183,082 |
| Year 6 | Rs 39,671,858 | Rs 22,491,660 | Rs 5,759,218 | -Rs 23,655,602 |
| Year 7 | Rs 42,845,607 | Rs 26,082,653 | Rs 5,622,007 | -Rs 27,554,200 |
| Year 8 | Rs 46,273,255 | Rs 29,991,043 | Rs 5,216,591 | -Rs 31,931,061 |
| Year 9 | Rs 49,975,116 | Rs 34,246,808 | Rs 4,516,929 | -Rs 36,844,733 |
| Year 10 | Rs 53,973,125 | Rs 38,883,018 | Rs 3,494,201 | -Rs 42,360,908 |
How sensitive is the answer
| Growth \ rent rise | 0% | 2% | 4% | 6% | 8% |
|---|---|---|---|---|---|
| 0% | Never | Never | Never | Never | Never |
| 2% | Never | Never | Never | Never | Never |
| 4% | Never | Never | Never | Never | Never |
| 6% | Never | Never | Never | Never | Never |
| 8% | Never | Never | Never | Never | Never |
| 10% | Never | Never | Never | Never | Never |
Each cell is the year buying overtakes renting. Rows are annual property growth, columns are annual rent rises. Everything else stays as you set it.
What this does and does not count
The renting side assumes you invest the deposit and every month you spend less than an owner would, at the return you set. It ignores the security of tenure, the freedom to alter a home you own, and the risk of being asked to leave a rental.
Renting winsRs 4.59 croreNo break even
About this calculator
Compare the full cost of owning against renting and investing the difference, including appreciation, selling costs and capital gains tax, and find the crossover year.
The answer swings hard on growth assumptions. Try the sensitivity grid before you trust a single result.