EMI vs Rent Comparison Calculator
About EMI vs Rent Comparison Calculator
The EMI vs Rent Comparison Calculator helps you decide whether buying a house or renting one is financially smarter. It compares your monthly EMI payments against rental expenses to show which option saves more in the long run.
Formula (Simple Explanation)›
EMI = [P × r × (1 + r)^N] / [(1 + r)^N − 1]
Where: P = Loan amount, r = Monthly interest rate (annual rate ÷ 12 ÷ 100), and N = Total number of monthly EMIs. The result helps compare cumulative EMI cost vs rent over time.
Example:
Input: If your home loan EMI is ₹25,000 per month for 15 years, and your rent is ₹15,000 with 5% annual increase
Output: Over 15 years, you pay about ₹45 lakh in EMIs vs ₹41 lakh in rent. The calculator helps decide if ownership is worth the difference.
Steps to Use:
- Enter your monthly rent and expected annual rent increase (%).
- Enter your loan amount, interest rate, and tenure for EMI calculation.
- Click 'Calculate' to compare the total rent paid vs EMI payments.
- Review long-term benefits, cost difference, and possible appreciation value.
Frequently Asked Questions
What does the EMI vs Rent Calculator show?›
It compares how much you spend on home loan EMIs versus rent over a specific period, helping you decide whether to buy or rent a property.
Is buying always better than renting?›
Not always. Buying builds an asset, but renting provides flexibility. The calculator shows which option fits your finances and lifestyle better.
Does the calculator include property appreciation?›
You can manually include estimated appreciation or savings from ownership. The base calculator focuses on EMI vs rent outflow comparison.
How accurate are the results?›
Results are approximate and based on the entered values — real outcomes vary with market rates, rent inflation, and maintenance costs.
Who should use this calculator?›
Anyone deciding between buying a home and renting, especially first-time buyers or those comparing housing costs across cities.