Compare the long-term wealth created by buying a house vs renting and investing the difference.
By renting, you create ₹1,52,16,886 more wealth over 20 years.
EMI: ₹69,426/mo
Total Paid: ₹1,86,62,206
Starting Rent: ₹30,000/mo
Total Rent Paid: ₹1,19,03,743
It compares the financial outcome of buying a house (paying EMI + downpayment) versus renting a similar house and investing your downpayment and the EMI-Rent difference in equity markets.
If equity returns (e.g., 12%) significantly outpace property appreciation (e.g., 6%), and the difference between your EMI and rent is large, the compounding effect of investing that difference can create more wealth than real estate.
Not at all! Buying provides emotional security, stability, and forced savings. However, this calculator strips away the emotion and looks purely at the mathematics of wealth creation.