Renting is not money down the drain, and buying is not always smarter. See where you would stand after years of each.
Investing the down payment and the monthly difference grows faster than home equity over this period.
Net worth under each choice at the end of every year. Tap or hover a year to compare.
| Year | Property value | Loan left | Net worth (buy) | Net worth (rent) | Difference |
|---|---|---|---|---|---|
| 1 | ₹85,60,000 | ₹62,72,625 | ₹22,87,375 | ₹28,22,298 | -₹5,34,923 |
| 2 | ₹91,59,200 | ₹61,33,992 | ₹30,25,208 | ₹35,41,905 | -₹5,16,697 |
| 3 | ₹98,00,344 | ₹59,83,105 | ₹38,17,239 | ₹43,24,293 | -₹5,07,054 |
| 4 | ₹1,04,86,368 | ₹58,18,880 | ₹46,67,488 | ₹51,75,487 | -₹5,07,999 |
| 5 | ₹1,12,20,414 | ₹56,40,140 | ₹55,80,274 | ₹61,02,119 | -₹5,21,845 |
| 6 | ₹1,20,05,843 | ₹54,45,600 | ₹65,60,243 | ₹71,11,494 | -₹5,51,251 |
| 7 | ₹1,28,46,252 | ₹52,33,865 | ₹76,12,386 | ₹82,11,657 | -₹5,99,271 |
| 8 | ₹1,37,45,489 | ₹50,03,415 | ₹87,42,074 | ₹94,11,473 | -₹6,69,399 |
| 9 | ₹1,47,07,674 | ₹47,52,595 | ₹99,55,079 | ₹1,07,20,709 | -₹7,65,630 |
| 10 | ₹1,57,37,211 | ₹44,79,605 | ₹1,12,57,606 | ₹1,21,50,130 | -₹8,92,524 |
| 11 | ₹1,68,38,816 | ₹41,82,485 | ₹1,26,56,331 | ₹1,37,11,601 | -₹10,55,270 |
| 12 | ₹1,80,17,533 | ₹38,59,102 | ₹1,41,58,431 | ₹1,54,18,203 | -₹12,59,772 |
| 13 | ₹1,92,78,760 | ₹35,07,135 | ₹1,57,71,625 | ₹1,72,84,359 | -₹15,12,734 |
| 14 | ₹2,06,28,273 | ₹31,24,057 | ₹1,75,04,216 | ₹1,93,25,972 | -₹18,21,756 |
| 15 | ₹2,20,72,252 | ₹27,07,119 | ₹1,93,65,134 | ₹2,15,60,584 | -₹21,95,450 |
A Mera Pata advisor will walk you through your options, lenders and projects that fit. Free, no obligation.
It depends on how long you will stay, the rent for a comparable home, loan rates and what your savings would earn elsewhere. Buying tends to win the longer you stay, because appreciation and loan repayment compound while the up-front costs are paid only once.
Both households spend the same each month. The renter invests the down payment and buying costs, and whoever has the lower monthly outgoing invests the difference. At the end we compare the buyer’s home equity plus savings with the renter’s investments.