Buy vs Rent Calculator
Set a comparison horizon in years. The buy side tracks EMI, loan balance, and home value with appreciation. The rent side pays rising rent and invests the down payment plus any monthly surplus when rent is lower than EMI (simple growth model).
Inputs
Results (end of horizon)
Buy + loan
โ
Net equity (home โ loan)
Home valueโ
Loan balanceโ
Rent + invest
โ
Investment corpus
Rent paid (cumulative)โ
What this model does (and does not) do
Buy path: Down payment is treated as upfront equity; the rest is a fixed-rate loan with standard EMI amortization. Home value grows each year by your appreciation input. Net equity โ value โ outstanding principal โ no transaction costs, registration, or tax on sale.
Rent path: Rent increases once per year. Any month where rent is below EMI, the difference is added to a portfolio earning your stated annual return (compounded monthly for the monthly surplus flow). The down payment is invested from day one at the same return. If rent exceeds EMI, the shortfall reduces the portfolio when possible.
Real decisions involve liquidity, tax benefits on home loans, rent flexibility, maintenance, and emotional preference โ use this as a structured sketch, not a prophecy.
Loan math
Cross-check EMI with our standalone EMI calculator before you sign.