Buying ties up the down payment and pays interest, maintenance and tax; renting pays rent that rises each year but leaves the down payment invested. The comparison is the wealth each path leaves after the years you choose — the house (less the loan) on one side, the investment on the other.
Home price
₹
₹1.00 crDown payment
%
Home loan rate
%
Loan tenure
yrs
Monthly rent for a similar home
₹
Rent rises each year by
%
Home value grows each year by
%
Return on money invested instead
%
Maintenance, tax and insurance a year
%
Of the home's valueStamp duty and registration
%
Of the price, paid onceCompare over
yrs
Results
Renting leaves you ahead by₹54.76 Lafter 10 years
Home equity at the end₹1.07 crhome ₹1.63 cr less loan ₹56.00 L
Renter's investments at the end₹1.62 crdown payment + costs + the monthly difference, invested
Monthly EMI₹69,426vs ₹30,000 rent now
Total paid to own₹1.23 crdown payment, costs, EMIs, upkeep
Total rent paid₹45.28 L
When rent is below the EMI plus upkeep, the renter invests the difference each month; when it is above, the buyer does. Tax relief on the loan (24(b), 80C) is not counted; neither is the value of living in your own home.
Wealth on each path
Buy: home less loanRent: investments
Year by year
| Year | EMIs paid | Rent paid | Home value | Buy: equity | Rent: investments |
|---|---|---|---|---|---|
| 1 | ₹833,110 | ₹360,000 | ₹10,500,000 | ₹2,659,218 | ₹3,582,847 |
| 2 | ₹833,110 | ₹378,000 | ₹11,025,000 | ₹3,357,510 | ₹4,544,526 |
| 3 | ₹833,110 | ₹396,900 | ₹11,576,250 | ₹4,097,369 | ₹5,592,613 |
| 4 | ₹833,110 | ₹416,745 | ₹12,155,063 | ₹4,881,462 | ₹6,735,440 |
| 5 | ₹833,110 | ₹437,582 | ₹12,762,816 | ₹5,712,641 | ₹7,982,177 |
| 6 | ₹833,110 | ₹459,461 | ₹13,400,956 | ₹6,593,956 | ₹9,342,918 |
| 7 | ₹833,110 | ₹482,434 | ₹14,071,004 | ₹7,528,672 | ₹10,828,773 |
| 8 | ₹833,110 | ₹506,556 | ₹14,774,554 | ₹8,520,286 | ₹12,451,974 |
| 9 | ₹833,110 | ₹531,884 | ₹15,513,282 | ₹9,572,538 | ₹14,225,990 |
| 10 | ₹833,110 | ₹558,478 | ₹16,288,946 | ₹10,689,440 | ₹16,165,657 |
Assumptions & formula
Buying:
equity = home value × (1 + appreciation)^t − loan balance; outgo = down payment + stamp duty + EMIs + upkeep. Renting: the down payment and costs invested at the return, plus (or minus) the monthly difference between the buyer's EMI + upkeep and the rent, with rent rising yearly.- Constant rates of appreciation, rent growth and investment return; no tax on the investment's gains and no tax relief on the loan.
Calculators are for information and planning. Outputs depend on the inputs and assumptions you enter and are not a recommendation to buy, sell or hold any security or product. Streetgains Technologies Private Limited is a SEBI Registered Research Analyst (INH000017082); it is not a loan provider, tax adviser or mutual fund distributor.