What is Buy vs Rent?
The buy-vs-rent decision isn't just about EMI versus rent. If you rent, you keep your down payment invested and save the gap between EMI and rent each month — which can compound significantly. If you buy, you build an appreciating asset but pay interest. This calculator compares the net wealth of both paths over your time horizon.
Formula
Two wealth paths are projected to the horizon:
BUY: future property value − outstanding loan
(minus EMIs paid over the period)
RENT: down payment grows at investReturn
+ monthly (EMI − rent) invested as a SIP
− total rent paid (with annual hikes)
Compare net wealth; the higher one wins.
Long horizons + appreciation favour buying;
short horizons + low yields favour renting.How to use this calculator
Enter the property value, current rent, down payment %, loan rate and tenure, expected property appreciation, annual rent hikes, the return you'd earn investing elsewhere, and how long you'll stay. The calculator shows which choice builds more wealth.