RENT VS BUY

Rent vs Buy Calculator

Compare renting with buying a similar home over the number of years you expect to stay. The model includes upfront cash, the loan, rent, ownership costs, future home value, selling costs and money that could stay invested.

Same starting housing cashSame monthly housing budgetFull net-wealth comparisonNo buy-or-rent recommendation

Your scenario stays in this browser while you use the page.RENT1 does not save or overwrite your Mortgage / Home Loan Decision Centre profile or shared housing-plan values.

YOUR ASSUMPTIONS

Compare two complete housing paths

1. Home, down payment and loan

Use the purchase price and rent for homes that are reasonably comparable in location, size and quality.

Price of the home

₹

Down payment

₹

20% of the entered home price. Home loan interest rate

Home loan term

years

2. Renting and how long you expect to stay

Monthly rent for a similar home

₹

How long do you expect to stay?

years

3. Future assumptions

These are assumptions, not forecasts. Small changes can materially change the result.

Expected change in home value

%/year

Expected rent increase

%/year

Return on money kept invested

%/year

Use an after-fee / after-tax assumption if that is what you want modeled. Annual increase in other housing costs

%/year

Advanced buying and renting costs

Buying costs

Enter local purchase costs you know. Carrowmont does not automatically calculate stamp duty, registration, taxes or lender charges.

Upfront buying costs

₹

Property tax / council rates each year

₹

Home insurance each year

₹

Maintenance and repairs each year

₹

Building / association / society / strata fees each month

₹

Home-loan insurance each month

₹

Other owner-only costs each month

₹

Do not add utilities or costs that would be the same under both paths. Selling costs at the end

% of future sale price

Renting costs

Refundable rental deposit

₹

The deposit is treated as cash tied up and returned at the end at the same nominal amount. Other upfront renting costs

₹

Renter-only costs each month

₹

SIDE-BY-SIDE RESULT

See what builds wealth and what is simply paid out.

Loan principal is not treated as a pure cost because it reduces debt and builds home equity.

If you buy

Starting home-loan payment: —
Projected home value: —
Remaining loan balance: —
Total loan interest paid: —
Owner-only recurring costs: —
Selling costs: —
Money invested when buying is cheaper: —

If you rent

Starting monthly rent: —
Total rent paid: —
Renter-only recurring costs: —
Refundable deposit returned: —
Money invested when renting is cheaper: —
Investment balance at horizon: —
Projected net wealth: —

PROJECTED NET WEALTHBuying and renting are plotted from the same result object.

BuyRent + invest

No hover is required. The table below is the text equivalent of the chart.

Year	Projected home value	Remaining loan	Buy path wealth	Rent + invest wealth	Difference

HOW THE COMPARISON WORKS

Give both paths the same resources.

The comparison avoids a common bias: assuming the renter invests every saving while the buyer never invests anything after the loan becomes cheaper or finishes.

Calculation sequence

Start both paths with the same available housing cash: the larger of the buyer's and renter's upfront requirements.
Each path pays its own upfront requirement. Any unused starting cash is invested.
For each month, calculate the full housing outflow for buying and renting.
Use the larger monthly outflow as the shared housing budget. The cheaper path invests the difference at month end.
Grow the home value, rent, other housing costs and investments using the assumptions you entered.
At the selected horizon, subtract selling costs and the remaining loan from the home value, then compare net wealth.

RELATED PLANNING

Use the right tool for the next question.

Goal PlannerPlan the amount and timing of a future down payment. It is not the Rent vs Buy comparison calculator.Budget & Cash Flow PlannerCheck whether the monthly housing cost you are considering fits your wider budget.Home Loan Payoff CalculatorAlready own the home? Test extra payments, prepayments or an earlier payoff target.Rate Rise / Payment StressBuying with a variable or resetting rate? Stress-test what a rate rise could do to the payment.

FAQ

Questions about renting versus buying

Does the calculator treat the full loan payment as a cost?

No. Interest is a financing cost, while principal reduces the loan balance and becomes part of home equity.

Why does the renter invest unused upfront cash?

Both paths start with the same available housing cash. If renting needs less cash upfront, the difference remains available to invest instead of disappearing from the comparison.

Can the buyer invest money later too?

Yes. Every month, whichever path has the lower housing outflow invests the difference. That includes the buyer after the loan is repaid if buying becomes cheaper.

Does this calculator tell me whether I should buy?

No. It compares financial paths under your assumptions. Stability, flexibility, location, maintenance responsibility and other life factors still matter.