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
—
Net equity (home − loan)
Home value—
Loan balance—
Rent + invest
—
Investment corpus
Rent paid (cumulative)—
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 ≈ value − outstanding principal — 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 — use this as a structured sketch, not a prophecy.
Frequently asked questions
What does the buy side of the model include?
Down payment as immediate equity, a fixed-rate reducing-balance loan for the remainder, EMI amortization, and home price growing at your appreciation rate. Net equity is roughly home value minus outstanding loan at the horizon.
How does the rent plus invest path work?
Rent grows once per year. The down payment is invested immediately. Whenever rent is lower than EMI, the monthly difference is added to the portfolio at your stated return; if rent exceeds EMI, the model tries to draw from the portfolio.
Why might the verdict differ from real life?
We omit maintenance, property tax, registration, moving costs, tax deductions on home loans, liquidity needs, and behavioral factors. Small assumption changes swing long horizons.
Does the currency selector convert FX?
No. It formats numbers only—keep inputs in one consistent currency.
Is this investment advice?
No. It is a simplified comparison for learning; consult licensed professionals for major decisions.
Are inputs sent to servers?
No. The simulation runs locally in JavaScript.
Loan math
Cross-check EMI with our standalone EMI calculator before you sign.