Rent vs Buy Calculator

It depends on how long you'll stay, how fast homes appreciate versus what your investments earn, and the gap between rent and an EMI. Over a short stay, renting and investing the down payment often wins because buying costs (down payment, interest-heavy early EMIs, stamp duty and maintenance) haven't had time to pay off. Over a long stay in a market where prices rise steadily, buying usually pulls ahead. Run your own numbers above — the honest answer changes with your assumptions.

A popular shortcut is the 5% rule: estimate the yearly cost of owning as roughly 5% of the home's value (about 1% maintenance, 1% property-related costs and 3% for the money tied up), then divide by 12. If that monthly figure is higher than the rent for a similar home, renting and investing the difference tends to win. The break-even point is the number of years you'd need to stay for buying to overtake renting — often somewhere between 5 and 10 years, but it varies a lot by city and interest rate.

Renting usually wins when you might move within a few years, when property prices are flat or falling, when rent is cheap relative to home prices, or when you can reliably earn more by investing the down payment than the home would appreciate. It also keeps you flexible and free of large upfront costs — money you can channel into a diversified portfolio instead of a single illiquid asset.

To stay simple the calculator focuses on the down payment, EMIs, home appreciation and a rough 1% maintenance estimate. Real purchases also carry stamp duty and registration, brokerage, property tax, home insurance, society or HOA fees, and selling costs when you exit. These extra costs push the break-even further out, so treat the result as an optimistic-to-fair estimate for buying rather than a floor.

No. This is an educational estimate that depends heavily on the assumptions you enter — especially home appreciation and investment return, which nobody can predict. Small changes to those inputs can flip the verdict. Use it to understand the trade-off and pressure-test your plan, then confirm the specifics with a qualified financial advisor before making a decision this large.