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Rent vs Buy Calculator

Compare the net cost of renting vs. buying a home over time.

How this is calculated
Net cost of buying = cash spent − home equity built. Net cost of renting = rent paid − investment growth on the unspent down payment.

Assumptions used in this calculation

  • Simplified opportunity cost: The renter's investment gain is calculated only on the initial down payment, not on any month-to-month savings from renting being cheaper than buying.
  • Property tax and maintenance: Calculated as a percentage of the home's current (appreciating) value each year.

About this calculator

The rent vs. buy calculator compares the net cost of buying a home (cash spent minus equity built) against renting (rent paid minus the investment growth your down payment would otherwise earn) over a chosen time horizon.

Worked example

₹80,00,000 home vs. ₹25,000/month rent, compared over 10 years

Result: Renting works out cheaper by roughly ₹9,30,000 over 10 years, in this example

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