Rent vs Buy Calculator
Compare the true cost of renting versus buying a home over time. Factor in mortgage, property tax, appreciation and investment returns.
🏠 Buy Scenario
🏢 Rent Scenario
📊 Analysis Settings
Break-even year
Never
Recommendation
Rent
Analysis Summary
Renting remains financially better over the 15-year analysis period. Consider your non-financial preferences like stability and customization.
Year-by-Year Comparison
| Year | Buy Equity | Buy Net | Rent Investment | Rent Net | Winner |
|---|---|---|---|---|---|
| Year 1 | ₹13,29,609 | ₹-65,862 | ₹12,76,555 | ₹12,76,555 | 🏢 Rent |
| Year 2 | ₹16,78,755 | ₹-1,14,299 | ₹15,68,766 | ₹15,68,766 | 🏢 Rent |
| Year 3 | ₹20,48,685 | ₹-1,44,249 | ₹18,77,598 | ₹18,77,598 | 🏢 Rent |
| Year 4 | ₹24,40,731 | ₹-1,54,583 | ₹22,04,082 | ₹22,04,082 | 🏢 Rent |
| Year 5 | ₹28,56,320 | ₹-1,44,096 | ₹25,49,324 | ₹25,49,324 | 🏢 Rent |
| Year 6 | ₹32,96,978 | ₹-1,11,504 | ₹29,14,504 | ₹29,14,504 | 🏢 Rent |
| Year 7 | ₹37,64,336 | ₹-55,434 | ₹33,00,887 | ₹33,00,887 | 🏢 Rent |
| Year 8 | ₹42,60,143 | ₹25,574 | ₹37,09,827 | ₹37,09,827 | 🏢 Rent |
| Year 9 | ₹47,86,269 | ₹1,33,083 | ₹41,42,775 | ₹41,42,775 | 🏢 Rent |
| Year 10 | ₹53,44,720 | ₹2,68,760 | ₹46,01,289 | ₹46,01,289 | 🏢 Rent |
| Year 11 | ₹59,37,644 | ₹4,34,385 | ₹50,87,039 | ₹50,87,039 | 🏢 Rent |
| Year 12 | ₹65,67,343 | ₹6,31,861 | ₹56,01,816 | ₹56,01,816 | 🏢 Rent |
| Year 13 | ₹72,36,287 | ₹8,63,222 | ₹61,47,547 | ₹61,47,547 | 🏢 Rent |
| Year 14 | ₹79,47,122 | ₹11,30,643 | ₹67,26,301 | ₹67,26,301 | 🏢 Rent |
| Year 15 | ₹87,02,692 | ₹14,36,447 | ₹73,40,303 | ₹73,40,303 | 🏢 Rent |
Rent vs Buy Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Compare the true cost of renting versus buying a home over time. Factor in mortgage, property tax, appreciation and investment returns. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.
Popular uses: rent vs buy calculator · should i rent or buy · home buying calculator
Last updated: August 2026
How We Calculate
This calculator uses standard mathematical formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server. The formulas used are industry-standard and match those used by banks, financial institutions and health organizations.
For financial calculators, we use RBI-approved formulas and regularly updated bank rates. For health calculators, we use WHO-recommended formulas and medical standards. All rates and standards are sourced from official government and regulatory websites.
Frequently Asked Questions
Is buying always better than renting?
No. Renting can be better if you move frequently, live in a high-cost area, or can invest the down payment at higher returns.
What costs should I consider when buying?
Beyond mortgage: property tax, insurance, maintenance (1-2% annually), closing costs, and opportunity cost of down payment.
What is the break-even point?
The year when buying becomes financially better than renting. Typically 5-7 years to recoup transaction costs.
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