HOME PURCHASE

What changes if you buy instead of rent?

Compare your EMI, ownership costs and future equity with rent and investing. Your age, salary and rent are shared across goals; other inputs stay in this home plan.

Home and loan

Home price (₹)Illustrative examplePurchase price before stamp duty, registration and furnishing.Down payment (%)Illustrative exampleShare of the price paid upfront from your own funds.Annual loan rate (%)Illustrative exampleYearly home-loan rate used for the reducing-balance EMI.Loan tenure (years)Illustrative exampleRepayment period used to calculate the scheduled EMI.Planning horizon (years)Illustrative exampleHow far the buy-versus-rent comparison should run.

Your household

Your current ageIllustrative exampleUsed to align the purchase with retirement and other goals.Monthly rent today (₹)Illustrative exampleCurrent monthly rent used as the renter’s starting cost.Monthly in-hand salary (₹)Illustrative exampleMonthly in-hand income; the model annualises it.

Owning costs

Monthly maintenance (₹)Illustrative exampleRecurring society or upkeep cost paid by the owner.Monthly property tax (₹)Illustrative exampleMonthly equivalent of annual property taxes.Monthly insurance (₹)Illustrative exampleMonthly equivalent of home insurance premiums.

Growth assumptions

Property appreciation (%)Illustrative exampleAssumed yearly growth in the home’s market value.Stock return (%)Illustrative exampleAssumed return if the deposit and monthly cost difference were invested.Annual rent growth (%)Illustrative exampleExpected yearly increase in rent.Annual salary growth (%)Illustrative exampleExpected yearly increase in in-hand income.Target EMI-to-salary ratio (%)Illustrative exampleHighest share of monthly income you want the EMI to consume.

Explore more scenarios

Delay purchase (years)Moves the purchase later while rent and investing continue.Alternate down payment (%)Tests a different upfront payment.Alternate loan tenure (years)Tests a different repayment term.Annual loan prepayment (₹)Extra principal paid once each year.Rate variation (%)Adds percentage points to the base loan rate.Price variation (%)Adds a percentage change to the base home price.

₹72,075 left each monthIncome ₹1,50,000, expenses ₹77,926, savings ₹0. Includes estimated amounts.

Base case

₹69,426 /month EMI

The EMI is above your target share of salary. The workbook's buy-vs-rent comparison estimates no break-even within your horizon.

Down payment: ₹20,00,000
Monthly owning cost: ₹77,926
Total scheduled interest: ₹86,62,206
Home equity at horizon: ₹3,20,71,355
Down payment invested in stocks: ₹1,34,55,000

Scenario comparison

Scenario	EMI	Equity at horizon
Base case	₹69,426	₹3,20,71,355
Buy after delay	₹92,907	₹2,75,42,935
Higher down payment	₹60,748	₹3,20,71,355
Longer loan	₹61,513	₹2,71,10,050
Annual prepayment	₹69,426	₹3,20,71,355
Higher DP + longer loan	₹53,824	₹2,77,30,213
Rate - shock	₹64,447	₹3,20,71,355
Rate + shock	₹74,570	₹3,20,71,355
Price - shock	₹55,541	₹2,56,57,084
Price + shock + 30Y	₹73,816	₹3,25,32,060

Buy versus rent and invest

Positive gap means the home equity is above the renter's invested portfolio under these assumptions. The comparison includes rent, ownership costs and investment returns.

PLAIN-LANGUAGE GUIDE

Home loan EMI and rent-vs-buy calculator

Compare a home purchase with continuing to rent and invest. The projection combines the down payment, EMI, ownership costs, rent growth and the alternative investment value.

Monthly ownership cost includes EMI, maintenance, property tax and insurance.
Break-even means estimated home equity moves above the renter’s invested portfolio.
Try rate, price, tenure and down-payment changes before relying on one result.

Read the formulas, defaults and limitations before using an illustration for a real decision.