Rent Vs Buy Calculator
Rent vs Buy Calculator
For every family dreaming of a home in Bangalore, one question keeps coming up: “Should I keep renting or should I buy?”
- Cheapest over 20 years: Buy with Owne.
- Highest wealth after 20 years: Buy with Owne.
- Total cost (interest + property charges / rent) over 20 years is about ₹86,00,998 for a standard home loan, ₹1,19,03,743 if you keep renting, and ₹43,36,144 if you buy with Owne.
- Owne reduces the bank’s interest sharply. Compared to a normal home loan, Owne saves roughly ₹39,49,214 of interest over the full loan journey.
- Owne net worth is calculated as: estimated home value at the end of the period minus any remaining smaller home loan (after your 3-year Owne phase plus regular EMIs).
Using a home loan EMI calculator with prepayment option, you can estimate how early payments (like bonuses or savings) can help reduce this total repayment drastically.
It’s a decision that mixes emotions, finances, and long-term planning. On one side, renting feels lighter and more flexible - but there’s no asset at the end. On the other, buying a home gives security, but EMIs can feel like a financial trap.
Our Rent vs Buy Calculator helps you crunch the numbers clearly. You can compare the cost of renting with the cost of owning a property (including EMIs, down payment, rent hikes, appreciation, and taxes). With this tool, the decision moves from gut-feel to data-driven clarity.
And beyond that, it shows you something most calculators won’t — there’s not just “rent” or “buy.” There’s a third option: Owne’s rent-to-own model, which blends the best of both worlds.
📌 Why the Rent vs Buy Dilemma Matters in Bangalore
But while the calculator shows you the numbers, it also raises an important question: Is there a better way to own a home than taking on decades of EMIs?
Average rent for a 2BHK in prime localities: ₹25,000–₹40,000/month.
Typical apartment price in good projects: ₹60–90 lakh.
Home loan EMI for ₹60 lakh at 9% over 20 years: ~₹54,000/month.
For a young family earning ₹1.5–2 lakh/month, choosing between ₹30k rent vs ₹54k EMI every month is not simple.
This is exactly where a rent vs buy calculator in India becomes important. Unlike global tools, it accounts for India-specific realities such as frequent rent hikes (5–8% annually), higher home loan interest rates, and long-term appreciation trends in Indian metros. That makes the comparison far more practical for families in Bangalore.
🔢 How the Rent vs Buy Calculator Works
Inputs you provide
Current monthly rent
Expected annual rent increase (%)
Property purchase price
Down payment available
Loan interest rate & tenure
Expected property appreciation (%)
Outputs you see
Total rent paid over chosen tenure (e.g., 10–20 years)
Total EMI + interest outflow over same period
Net wealth after property appreciation (if you buy)
Long-term savings difference
📊 Example 1: Renting a 2BHK vs Buying in Bangalore
Scenario 1: Renting
Rent = ₹30,000/month
Rent hike = 5% annually
Period = 20 years
Total rent paid = ~₹1.15 crore
At the end of 20 years → you own no property.
Scenario 2: Buying
Total rent paid over chosen tenure (e.g., 10–20 years)
Total EMI + interest outflow over same period
Net wealth after property appreciation (if you buy)
Long-term savings difference
Total repayment = ₹1.29 crore (₹69 lakh interest)
At the end of 20 years → you own an asset worth ₹1.5–1.8 crore (assuming 4–5% annual appreciation).
👉 Clearly, buying builds wealth — but at the cost of very heavy EMIs and interest outflow.
🧮 Factors That Tip the Scale
Rent Inflation vs Property Appreciation
In Bangalore, both rents and property prices rise steadily. A rent vs buy calculator in India helps you weigh which one grows faster over time and shows when buying starts to make more financial sense.
Loan Interest Rates
High rates make EMIs more painful. Even a 1% change in rate affects EMIs by thousands.
Down Payment
Large down payment reduces EMI and interest. Many buyers delay purchase just to save this upfront amount.
Liquidity & Flexibility
Rent keeps cash flow flexible. Buying locks you into EMIs — unless you find smarter alternatives.
Lifestyle & Location
Rent allows easy relocation closer to offices or schools. Buying ties you down — unless you’re sure about long-term stay.
❌ Problems With “Buying” the Traditional Way
While calculators may show buying as better in the long run, real life is harder:
Huge entry barrier: 20% down payment = ₹15–20 lakh for most flats.
Lifetime of EMIs: Paying ₹50–60k every month for 20 years drains families.
Total cost doubles: The interest burden means your ₹60 lakh home may cost ₹1.3 crore in reality.
Loan eligibility hurdles: Self-employed, freelancers, or those with unstable income often get rejected.
For many, the numbers look good on paper but don’t work in practice.
✅ Owne: The Smarter Third Path
Owne solves the Rent vs Buy dilemma by creating a Rent-to-Own pathway:
Move in now → without waiting for huge down payment savings.
Pay lower monthly ownership contributions → lighter than a full EMI.
Build ownership gradually → your payments increase your stake in the property.
Co-investor support → while you pay monthly, an investor helps hold the property, and you gradually buy them out.
Think of it as:
Not “throwing money” away on rent.
Not “locking yourself” into heavy EMIs.
But owning step by step, with flexibility.
📉 Case Study: Renting vs Buying vs Owne
Option
20-Year Cost
Asset Owned
Flexibility
Rent @ ₹30k/month
₹1.15 crore
None
High
Buy with Loan
₹1.29 crore (₹69L interest)
Flat worth ₹1.5–1.8Cr
Low
Owne Rent-to-Own
Lower monthly + no big loan interest
Flat ownership step by step
Medium-High
✅ Conclusion
A Rent vs Buy Calculator helps you see the truth behind the rent-vs-ownership debate. In Bangalore, both rent and EMIs are expensive, and traditional models often leave families stuck between two tough choices.
Owne changes the game. By combining the flexibility of renting with the asset-building of buying, we give you a clear third option: own your home step by step, without crushing EMIs or endless rent.
👉 Try our Rent vs Buy Calculator today. See the numbers for yourself — and then explore how Owne helps you turn those numbers into your home.