Is renting or buying cheaper?
It depends on your time horizon, local market, home prices, rent costs, and interest rates. Generally, buying becomes cheaper the longer you stay.
Rent vs. Buy Calculator
Compare the total cost of renting versus buying a home over your chosen time horizon including all expenses.
Rent vs. Buy Calculator
Compare the total cost of renting vs. buying a home over your chosen time horizon.
Buying monthly cost
Rs 220,044
Renting monthly cost: Rs 50,000
Total buy cost (10y): Rs 27,005,252
Total rent cost (10y): Rs 7,546,736
Buy equity after 10y: Rs 4,000,000
Renting is cheaper over this time horizon
How to decide between renting and buying
What is this rent vs. buy calculator?
Deciding whether to rent or buy a home is one of the biggest financial decisions you will make. This calculator compares the total cost of both options over your chosen time horizon, factoring in mortgage payments, property tax, insurance, maintenance, closing costs, rent, and annual rent increases.
The right choice depends on how long you plan to stay, local market conditions, and your financial situation.
How to use the rent vs. buy calculator
Enter the home price, down payment, mortgage rate, and time horizon. Add monthly rent, annual rent increase, property tax, insurance, maintenance, and closing costs. The calculator shows monthly costs, total costs, and which option is cheaper.
Try different time horizons to find your break-even point. If you plan to move within a few years, renting is usually cheaper.
Frequently Asked Questions
What is the 5% rule?
The 5% rule says that if the annual cost of owning (maintenance, taxes, insurance, lost investment return on down payment) exceeds rent, renting is better.
How long should I stay in a home for buying to make sense?
Typically 5-7 years is the break-even point where buying becomes cheaper than renting in most markets.
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