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Rent vs Buy Calculator
Compare what buying a home costs each month, EMI and upkeep included, against paying rent.
Cheaper option, per month
Buying cost breakdown
| Item | Per month |
|---|---|
| Loan amount | |
| EMI | |
| Property tax | |
| Insurance | |
| Maintenance | |
| Total buying cost |
Estimate only, not financial advice. It compares monthly costs alone and leaves out price growth, rent rises and resale value.
How it works
Loan = price × (1 − down payment ÷ 100) r = interest rate ÷ 12 ÷ 100, n = tenure years × 12 EMI = loan × r × (1 + r)^n ÷ ((1 + r)^n − 1) Monthly buying cost = EMI + tax ÷ 12 + insurance ÷ 12 + maintenance
Worked example: a ₹60,00,000 home with 20% down leaves a loan of ₹48,00,000. At 8.5% over 20 years the EMI is ₹41,656 a month; adding tax of ₹1,000, insurance of ₹500 and maintenance of ₹2,000 gives a buying cost of ₹45,156 a month — against rent of ₹25,000, so renting is cheaper by ₹20,156 a month.
Frequently asked questions
Why is renting cheaper here even though rent is “money down the drain”?
Because the EMI on a large loan, plus tax, insurance and upkeep, can exceed rent for years. Renting only looks wasteful if you ignore what buying actually costs each month.
Does this calculator account for the home gaining value?
No. It compares monthly outgoings only. A home that rises in value, or rent that climbs each year, can change the long-term answer even when renting wins this month.
What does the down payment change?
A bigger down payment shrinks the loan and therefore the EMI. Try raising it and watch the buying bar fall — but remember that money is tied up in the home.
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