Buy vs rent
Assumptions
Equal-budget pre-tax comparison. Renter invests down payment plus buying setup costs at the outset. Each month whichever route costs less invests the difference; both portfolios use the equivalent monthly rate of the effective annual investment return, contributions at month-end. Buyer wealth = property value − remaining loan + invested differences. Renter wealth = alternative portfolio. Mortgage stops at repayment, never goes negative. Rent and owner costs rise annually. Excludes HRA/deductions, capital-gains taxes, selling costs, rental deposits and non-financial preferences; no blanket buy/rent recommendation.
Estimates are not personalised financial advice. Review assumptions before use.
Renting ends with higher net assets
Difference after 10 years, under your assumptions.
- Buyer net assets
- ₹1.07 crore
- Renter investments
- ₹1.26 crore
- Property value
- ₹1.63 crore
- Mortgage remaining
- ₹56 lakh
- First year buying matches or leads
- Not within this period
Before taxes and selling costs. A year-end lead can reverse; it is not a recommendation.
₹71.58 lakh difference over 10 years
Buying cash paid includes down payment, setup costs, mortgage payments and owner costs. Rent paid excludes investment contributions. Cash paid is not the same as net wealth.
Year-by-year breakdown
| Year | Buyer net assets | Renter investments | Property value | Mortgage remaining | Buying cash paid | Rent paid | Buying / month¹ | Rent / month¹ |
|---|---|---|---|---|---|---|---|---|
| 1 | ₹26.59 lakh | ₹33.6 lakh | ₹1.05 crore | ₹78.41 lakh | ₹34.93 lakh | ₹3.6 lakh | ₹74,426 | ₹30,000 |
| 2 | ₹33.58 lakh | ₹41.66 lakh | ₹1.1 crore | ₹76.67 lakh | ₹43.89 lakh | ₹7.38 lakh | ₹74,676 | ₹31,500 |
| 3 | ₹40.97 lakh | ₹50.2 lakh | ₹1.16 crore | ₹74.79 lakh | ₹52.88 lakh | ₹11.35 lakh | ₹74,938 | ₹33,075 |
| 4 | ₹48.81 lakh | ₹59.25 lakh | ₹1.22 crore | ₹72.74 lakh | ₹61.91 lakh | ₹15.52 lakh | ₹75,214 | ₹34,729 |
| 5 | ₹57.13 lakh | ₹68.84 lakh | ₹1.28 crore | ₹70.5 lakh | ₹70.97 lakh | ₹19.89 lakh | ₹75,503 | ₹36,465 |
| 6 | ₹65.94 lakh | ₹79.01 lakh | ₹1.34 crore | ₹68.07 lakh | ₹80.07 lakh | ₹24.49 lakh | ₹75,807 | ₹38,288 |
| 7 | ₹75.29 lakh | ₹89.8 lakh | ₹1.41 crore | ₹65.42 lakh | ₹89.2 lakh | ₹29.31 lakh | ₹76,126 | ₹40,203 |
| 8 | ₹85.2 lakh | ₹1.01 crore | ₹1.48 crore | ₹62.54 lakh | ₹98.38 lakh | ₹34.38 lakh | ₹76,461 | ₹42,213 |
| 9 | ₹95.73 lakh | ₹1.13 crore | ₹1.55 crore | ₹59.41 lakh | ₹1.08 crore | ₹39.7 lakh | ₹76,813 | ₹44,324 |
| 10 | ₹1.07 crore | ₹1.26 crore | ₹1.63 crore | ₹56 lakh | ₹1.17 crore | ₹45.28 lakh | ₹77,182 | ₹46,540 |
¹ Average across that year, including months after mortgage repayment. Monthly buying excludes upfront costs.