EMI vs Rent Calculator (India): Should You Buy or Rent?
Deciding whether to buy a house or continue renting is one of the biggest financial decisions you'll make. This EMI vs Rent calculator helps you compare both options using realistic assumptions about loan interest, rent increases, investment returns, and property appreciation in India.
Calculator Inputs
Property & Loan Details
Total cost of the property
Initial payment (typically 20%)
Rent Details
Results
Buying Wins
After 20 years, buying results in ₹25.17 lakh higher net worth.
Financial Analysis
Compare net worth and loan outstanding over time
Net Worth Over Time
Loan Outstanding
Why This Isn't Obvious
Most people only compare monthly EMI vs rent. This ignores opportunity cost—what you could earn by investing your down payment and the EMI-rent difference in equity markets.
When Buying Makes Sense
10+ year stay, strong property appreciation (6-8%), 20%+ down payment without depleting emergency funds, and EMI not drastically higher than rent.
When Renting Is Better
Short time horizon (<7 years), high investment discipline (10-12% returns), rent significantly lower than EMI, and property prices stagnant or overvalued.
Frequently Asked Questions
Methodology
How This Calculator Works
EMI Calculation
We use the standard EMI formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where:
- P = Loan principal
- r = Monthly interest rate
- n = Loan tenure in months
Investment Growth
Renting scenario assumes you invest:
- The down payment amount
- The difference between EMI and rent each year
Both grow at your chosen investment return rate (default: 10% annually).
Assumptions
- Rent increases annually (not monthly)
- Property appreciates linearly
- Investment returns compound annually
- No transaction costs included (stamp duty, brokerage)
- Maintenance costs not factored in
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Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Results are based on assumptions and may not reflect actual outcomes. Consult a qualified financial advisor before making investment decisions.