See whether buying a home or renting and investing the difference leaves you with more net worth over time.
What renting-and-investing the difference could earn instead of being tied up in a down payment and EMI.
EMI: ₹55,541/month · Down payment + buying costs: ₹16.00 L
| Year | Buy (equity) | Rent & invest |
|---|---|---|
| 1 | ₹22.07 L | ₹28.49 L |
| 3 | ₹35.45 L | ₹44.31 L |
| 5 | ₹50.66 L | ₹63.35 L |
| 7 | ₹67.95 L | ₹86.31 L |
| 9 | ₹87.63 L | ₹1.14 Cr |
| 11 | ₹1.10 Cr | ₹1.48 Cr |
| 13 | ₹1.36 Cr | ₹1.88 Cr |
| 15 | ₹1.65 Cr | ₹2.38 Cr |
A directional model, not a prediction — actual home appreciation, rent growth, and investment returns will differ from these assumptions. Doesn't account for tax benefits on home loan interest/principal or capital gains tax on investment withdrawals.
It compares two paths for the same money: buying a home (equity = home value minus remaining loan) versus renting and investing what you would have otherwise spent on a down payment, EMI, and maintenance. Whichever leaves you with more net worth after your chosen time horizon 'wins' financially — though the decision isn't purely financial.
Not necessarily — it depends heavily on how the numbers compare: home appreciation vs. investment returns, rent growth vs. EMI (which is fixed once you buy), and how long you stay. In expensive cities where rental yields are low (rent is cheap relative to home price), renting and investing the difference often wins financially over long horizons, even though buying feels more secure.
It doesn't factor in income tax benefits on home loan interest (Section 24) and principal (Section 80C) under the old regime, capital gains tax when you eventually sell investments, brokerage/exit costs when selling a home, or the non-financial value of owning (stability, customization, no landlord risk).
Rents in most Indian cities have historically grown somewhere in the 5-8% annual range, though this varies a lot by city and micro-market. Adjust the slider to match what you've actually seen in your area for a more accurate comparison.