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Buy Cost = EMI×n + Down + Tax vs Rent Cost = Rent×n − Invest Return

Rent vs Buy Comparison

Should You Rent or Buy a Home?

Compare the true total cost of renting vs buying over any time horizon. Includes break-even analysis, opportunity cost of down payment, and wealth-building projection.

Buying Scenario

Renting Scenario

If you were to buy — annual society maintenance, repairs, etc.

Verdict for 10 years

Buying is better by ₹—

Break-even at years

Total Buy Cost

₹—

(EMI + Down pmt + Tax)

Property Value (Future)

₹—

After appreciation

Total Rent Cost

₹—

(Rent over period)

Investment Corpus

₹—

(Down pmt invested)

Net Buy (Cost − Future Value)
Net Rent (Rent − Investment Corpus)

Rent vs Buy — Key Considerations

Renting makes sense when...

You plan to stay in the city for less than 3–5 years. The monthly rent is significantly less than EMI. Down payment can earn higher returns elsewhere. You value flexibility over permanence.

Buying makes sense when...

You plan a long-term stay (7+ years). Monthly EMI is comparable to rent in the area. You want a stable, inflation-hedged asset. You want to build equity and benefit from property appreciation.

What is opportunity cost of down payment?

If you invest the down payment in mutual funds (avg 12% CAGR) instead of buying, that corpus could grow significantly. This calculator compares that opportunity cost against property appreciation to help you decide.

How is break-even calculated?

Break-even is the year when the net wealth from buying (property value − remaining loan) equals the net wealth from renting (investment corpus − rent paid). Before break-even, renting may be cheaper.