Is it mathematically better to rent or buy?

It depends on property appreciation, rent inflation, and your investment returns. Buying builds equity, while renting allows you to invest your down payment elsewhere. This calculator compares the final net worth of both scenarios.

What is the 5% rule in renting vs buying?

The 5% rule is a quick estimation tool that says you should calculate 5% of a home's value and divide by 12. If you can rent a comparable home for less than that number, renting might be financially better.

Rent vs Buy Calculator - Free Smart Calculators & AI Tools

Rent vs Buy Calculator | Compare Real Estate Financials

🏡 Housing Financial Engine

Property Price (To Buy)

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Down Payment (%)

Home Loan Rate (% p.a.)

Time Horizon (Years)

Yrs

Current Monthly Rent

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Property Appreciation (% p.a.)

Rent Inflation (% p.a.)

Investment Return (% p.a.)

✨ AI Quick Verdict

Calculating the most optimal financial path based on your parameters…

Final Net Worth (If you Buy)

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Final Net Worth (If you Rent)

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Net Worth Comparison

BUY

RENT

Total Payments Breakdown

Total EMI

Total Rent

Buy Net Worth = Property Future Value – Remaining Loan
Rent Net Worth = (Down Payment + EMI Savings) compounded @ Inv Return

End of Year	Property Value (Buy)	Monthly Rent	Invested Portfolio (Rent)

About the Rent vs Buy Engine

This calculator determines the opportunity cost of tying up your capital in real estate. When you buy, your Down Payment and Monthly EMIs build equity in a depreciating/appreciating asset.

When you rent, you pay a landlord, but you can invest your Down Payment and the monthly difference (if EMI > Rent) into the stock market or mutual funds. This tool runs a compounding simulation to reveal which strategy leaves you with a higher net worth at the end of the selected tenure.

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⚖️ Rent vs Buy Calculator

About the Rent vs Buy Engine