How the comparison works
If you buy, you pay the down payment, stamp duty and costs upfront, then the EMI and maintenance; you end up owning the home. If you rent, you invest the money you would have spent upfront, plus whatever you save each month compared with owning. Whoever ends with more wealth after 20 years "wins" in money terms.
Questions people ask
Is rent money wasted?
Not necessarily. Buying also has costs that aren’t building wealth: loan interest, stamp duty, maintenance and the return your down payment could have earned. This calculator compares both paths fairly.
What matters most in the result?
Property price growth and investment returns. Try a few combinations, for example 4–6% for property and 9–12% for investments, to see when buying wins.
Doesn’t this ignore the security of owning?
Yes. Stability, freedom to modify your home and emotional value are real but can’t be calculated. Use the numbers as one input to the decision.
Method and sources
Buying: down payment and buying costs paid upfront, EMI on the loan, yearly maintenance as a % of the home's value; wealth = home value − loan left. Renting: the down payment and buying costs are invested instead, and each month whoever spends less invests the difference at the expected return. Taxes and tax benefits are not included. How we calculate.
Last reviewed 22 Oct 2026 by the WealthFeedz team.