# Rent vs Buy Calculator

Source (interactive calculator): https://hyderabadhomeloans.com/rent-vs-buy-calculator/

Compare your net worth after years of buying with a home loan against renting and investing the difference.

Renting looks cheaper month to month, but buying builds an asset. The fair comparison is what you own at the end: the buyer has a home (minus any loan left); the renter has whatever they invested instead of paying a down payment and EMIs.

## How the comparison works

- The buyer pays the down payment and purchase costs upfront, then the EMI and maintenance each month
- The renter invests the same upfront amount, pays rent, and invests whatever they save each month compared with the buyer
- If rent ever costs more than owning, the buyer invests the difference instead
- Net worth = home value − loan outstanding + investments (buyer) vs investments (renter)

The answer depends heavily on how fast property prices and rents grow and what your investments earn. Try a few scenarios. Tax benefits on the home loan and selling costs are not included.

## FAQs

### What property appreciation should I assume?

Use a conservative long-term figure. Past growth in your area is a guide, not a promise — try a lower and a higher figure to see how sensitive the result is.

### Why does renting sometimes win in the early years?

Buying has large upfront costs (stamp duty, registration) and early EMIs are mostly interest. Over longer periods, rising rents and property values usually favour buying.

### Does this include tax benefits?

No. Home loan tax deductions can make buying more attractive, depending on your tax regime. Ask your tax adviser.



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Hyderabad Home Loans — authorised DSA of LIC Housing Finance Ltd since 2002. Free eligibility check: https://hyderabadhomeloans.com/. Phone / WhatsApp +91-8886249998.