Rent vs Buy Calculator
Should you rent or buy? This calculator compares the total cost of each over your chosen time horizon, factoring in loan payments, rent increases and property appreciation.
Show solution steps
What is the Rent vs Buy Calculator?
The rent vs buy decision depends on far more than the monthly EMI versus rent. Buying involves a down payment, years of interest and property appreciation; renting means rising rent but freed-up capital. This tool weighs them over time.
How to Calculate
Buying net cost = down payment + total EMIs − future home value. Renting cost = total rent over the period, rising each year. The lower net cost wins for that horizon.
Formula
Compares net cost of buying (EMIs − appreciation) vs total rent paid.
How to Use
- Enter your details in the fields above.
- The result updates instantly as you type.
- Use Copy, Print or Download PDF to save your result.
Frequently Asked Questions
Is buying always better?
Not necessarily u2014 over shorter horizons, high interest and transaction costs can make renting cheaper. The longer you stay and the faster property appreciates, the more buying favours you.
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