Loan vs Rent Calculator
Should you buy or keep renting? Enter the home price and loan details, your monthly rent and how many years to compare — and see the total cost of each option side by side.
Your result will appear here
Buy vs rent over the comparison period
Assumptions: buying cost = down payment + EMI payments over the period; rent rises each year by the rate you entered. Buying also builds equity in the home, while rent does not — and this comparison excludes maintenance, taxes, insurance and home-price changes.
How to use
- Enter the home price, your down payment and the loan rate and tenure.
- Enter your monthly rent, how fast rent rises each year, and how many years to compare.
- Click Compare Buy vs Rent to see both totals side by side.
Frequently asked questions
Is buying always cheaper than renting?
No. Buying is usually cheaper over a long stay because rent keeps rising and the loan eventually ends, but over a short stay the down payment, fees and selling costs often make renting cheaper.
What costs does this comparison leave out?
Maintenance, property tax, home insurance, buying and selling fees, and any change in the home's value. It also ignores the fact that part of each EMI builds equity — money you get back when you sell.
How long do I need to stay for buying to win?
It depends on prices in your area, but a common rule of thumb is 5-7 years. The longer you stay, the more the fixed loan payment beats rising rent.
Does rent really rise every year?
Often, yes — landlords commonly raise rent in line with inflation, roughly 2-4% a year in many markets. That is why the calculator lets you set an annual rent increase.