Rent Vs Buy Calculator

Analysis Period 20 Years

Renting

Monthly Rent 15,000

HRA Tax Benefit 20%
Effective Monthly Rent 12,000

Effective Annual Rent (R ) 144,000

Annual Rental Increase 8%
Rent (Analysis Period) (R') 6,589,723

Returns on Savings
Downpayment (D) 1,000,000
Monthly Savings (S)
(EMI @9% - Monthly Rent)
(Calculation Below) 20,989
Expected Returns% 12%

After Analysis Period

FV of Downpayment (D') 9,646,293
FV of Monthly Savings (S')
(Detailed Calculation Below) 8,683,165

Net Savings (D'+S'-R') 11,739,736

Future Value of Monthly Savings - Calculation

Year 1 2
Annual EMI 431,868 431,868
Annual Rent 180,000 194,400
EMI - Rent 251,868 237,468
NPV (EMI-Rent) 900,156
FV of NPV of (EMI-Rent) 8,683,165
 By: AssetYogi
Enter Figures in Yellow Cells

Buying

Property Price (P) 5,000,000

Downpayment 1,000,000
Loan Amount 4,000,000
Loan Interest Rate 9%
EMI (@9%) 35,989
Tax Bracket 20%
Effective Interest Rate 7.2%
EMI (@7.2%) 31,494

Total Interest Payment (@7.2%) (I) 3,558,553

Maintenance Per Month 2,000

Annual Increase 6%
Total Maintenance During
Analysis Period (M) 882,854

Total Costs (C = P+I+M) 9,441,407

Sell After Analysis Period

Annual Appreciation 8%
FV of Property (P') 23,304,786

Net Savings (P'-C) 13,863,378

3 4 5 6
431,868 431,868 431,868 431,868
209,952 226,748 244,888 264,479
221,916 205,120 186,980 167,389
7 8 9 10 11 12
431,868 431,868 431,868 431,868 431,868 431,868
285,637 308,488 333,167 359,821 388,606 419,695
146,231 123,380 98,701 72,048 43,262 12,173
13 14 15 16 17 18
431,868 431,868 431,868 431,868 431,868 431,868
453,271 489,532 528,695 570,990 616,670 666,003
-21,402 -57,664 -96,826 -139,122 -184,801 -234,135
19 20 21 22 23 24
 431,868 431,868 - - - -
719,284 776,826 - - - -
-287,415 -344,958 - - - -
25 26 27 28 29 30
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31 32 33 34 35 36
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37 38 39 40
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