Estimate break-even timeline using home price, EMI, rent escalation, and home appreciation assumptions.
Based on current assumptions, Buying appears more favorable over 20 years.
Buy vs rent is not just an EMI question. It is a long-term cash-flow and wealth decision that depends on rent growth, property appreciation, down payment, and holding period. This calculator helps you compare effective costs and identify when buying may become financially favorable.
If home price is ₹1 crore with 20% down payment and rent is ₹35,000/month, you can test how different rent-growth and appreciation assumptions change break-even year. This is useful before committing to long-tenure home loans or deciding to keep renting.
EMI is computed using reducing-balance amortization. Buying outflow combines down payment, EMI, and ownership overhead assumptions. Renting outflow compounds yearly by rent increase. Break-even is estimated where buy effective cost (cash outflow minus accumulated home equity) becomes lower than rent outflow.
Yes. The model includes a simple annual ownership overhead assumption to avoid unrealistic buy-side underestimation.
Yes. Small changes in appreciation, rent growth, or interest rate can materially shift break-even year.
No. Combine this with liquidity, job stability, location preference, and emergency fund readiness before final decision.