How this rent vs buy comparison works
The model estimates a monthly home-loan payment, remaining loan balance, property value and owner costs. It compares homeowner equity plus invested monthly savings with a renter’s investment balance, including the upfront cash not spent on a down payment and purchase costs. Results depend on the assumptions you enter; they are scenarios, not a prediction of future prices or returns.
Frequently asked questions
Does this tell me whether I should buy a home?
No. It compares financial assumptions only. Location, flexibility, stability, family needs and your comfort with debt also matter.
What costs should I include?
Include purchase charges in purchase costs, recurring maintenance and property costs in annual upkeep, and likely selling costs at the end. For Karnataka, use the related stamp-duty calculator as an estimate for purchase charges.
How are rent increases and investment returns used?
Rent increases once per year by the percentage entered. Any monthly cash-flow difference is invested for the side with the lower housing cost, using the investment return you provide.
Does the result include taxes or tax benefits?
No. Tax treatment depends on your situation and current rules. The comparison also excludes loan processing charges, rent deposits, insurance and non-financial benefits unless you reflect them in your assumptions.
Related tools
For general planning only. This calculator does not provide financial, tax or property advice.