Rent vs Buy Calculator
Make informed property decisions with our comprehensive rent vs buy analysis. Compare long-term costs, find your breakeven point, and discover which option works best for your financial situation.
How to Use the Rent vs Buy Calculator
Input Your Details
- • Monthly Rent: Current or expected rental amount
- • Property Price: Purchase price of the property
- • Years of Stay: How long you plan to live there
- • Growth Rates: Expected rent increase and property appreciation
Understand the Results
- • Breakeven Point: When buying becomes cheaper than renting
- • Total Costs: Cumulative expenses over your timeline
- • Visual Chart: Clear comparison of costs over time
- • Savings: How much you save with the better option
Key Factors Considered
- • Down payment
- • EMI payments
- • Maintenance costs
- • Tax benefits
- • Property appreciation
- • Monthly rent
- • Annual rent increases
- • Security deposit
- • Brokerage (if any)
- • 20% down payment
- • 20-year home loan
- • 30% tax bracket
- • Standard tax benefits
Frequently Asked Questions
When does buying make more sense than renting?
Buying typically makes sense when you plan to stay in the same location for 5+ years, have stable income, and can afford the down payment without compromising your emergency fund. The breakeven point usually occurs between 3-7 years depending on local market conditions.
What factors can change the rent vs buy equation?
Key factors include interest rate changes, property appreciation rates, rent inflation, tax law changes, maintenance costs, and your personal financial situation. Market conditions and location-specific factors also play a significant role.
How accurate are the calculator results?
The calculator provides estimates based on your inputs and standard assumptions. Actual results may vary due to market fluctuations, changes in interest rates, unexpected maintenance costs, or changes in your personal circumstances. Use it as a starting point for your decision-making process.