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The honest answer isn't "rent is throwing money away." It's: after N years, which choice leaves you with more wealth? We run a month-by-month simulation - home equity and appreciation on one side, renting and investing the difference on the other - and compare your net worth.
Adjust the inputs to compare
SmartTheta builds an equity portfolio matched to your exact risk profile - so the money you don't lock into a home actually compounds.
Most rent-vs-buy debates compare rent against EMI and stop there. That is misleading, because the buyer ends up owning an appreciating asset and the renter can invest the large down payment instead of locking it into property. A fair comparison must put both on the same monthly budget and measure the net worth each person holds at the end of the period.
This tool runs a month-by-month simulation. The buyer pays the down payment, stamp duty and registration up front, then EMIs plus maintenance and property tax each month, and finishes owning a home worth its appreciated value minus the outstanding loan and selling costs. The renter invests that same up-front money, pays rent each month, and invests any difference between the buyer's outflow and their rent at the assumed return. Whoever has the higher net worth after your chosen number of years wins.
Indian rental yields are typically just 2-3% of property value per year, which means rent is cheap relative to the cost of buying the same home. When the down payment and the monthly savings are invested at equity-like returns, renting frequently comes out ahead over 5-10 year horizons. Buying tends to win over longer horizons, with strong appreciation, a low loan rate, or a high rent-to-price ratio. Adjust the sliders to see where your situation lands.
This calculator provides illustrative estimates for educational purposes only and does not constitute financial, tax, or legal advice. It assumes a fixed loan rate and constant annual rates for appreciation, rent escalation, and investment return; real outcomes vary. Tax benefits on home-loan interest/principal and on capital gains are not modelled. Consult a qualified adviser before making a property decision.