Rent vs Buy Calculator
Updated 20 August 2026
Compare the long-term net worth outcome of buying a home with a loan versus renting and investing the difference — same money, two different paths.
Open the Live Rent vs Buy Calculator →Frequently asked questions
What is a rent vs buy calculator?
It compares two paths over the same number of years: buying a home with a loan, versus renting an equivalent home and investing the money you'd otherwise have used for a down payment and higher housing costs. It shows which path leaves you with more net worth.
How is 'net worth' calculated for the buying path?
As the projected market value of the home at the end of your comparison period, minus whatever loan balance is still outstanding at that point — essentially, what you could walk away with if you sold the home and paid off the remaining loan.
How is 'net worth' calculated for the renting path?
As your down payment (which you never spent, since you rented instead) plus the monthly gap between the EMI and your actual rent, both invested and compounding at your expected investment return over the same period.
Why does the calculator assume the EMI-rent difference gets invested?
Because if you rent, you're not paying the EMI — you're only paying rent, which is usually lower. The logic assumes a disciplined renter invests that leftover amount each month rather than spending it, to make the comparison fair.