Rent vs Buy Calculator

Compare the financial impact of renting vs buying a property. Make an informed decision based on real numbers.

Property & Rental Details
NPR
NPR 10.00 LNPR 5.00 Cr
NPR
NPR 5.0KNPR 2.00 L
Loan Details
%(NPR 25.00 L)
10%50%
%
5%20%
Years
5 Years30 Years
Time Horizon & Assumptions
Years
1 Year30 Years
%
0%20%
%
0%15%
%
5%20%
Recommendation: Rent
NPR 4.21 L Cost Difference
Savings Percentage
2.7%
Monthly Difference
+NPR 47.9K
EMI - Rent
Break-Even Year
Year 1
When buying becomes cheaper
Buying Costs
Down PaymentNPR 25.00 L
Loan AmountNPR 75.00 L
Monthly EMINPR 87.9K
Total EMI PaidNPR 1.05 Cr
Total InterestNPR 30.44 L
MaintenanceNPR 15.00 L
Property TaxNPR 10.00 L
Stamp DutyNPR 2.00 L
Registration FeeNPR 1.00 L
Total PaidNPR 1.58 Cr
Property Value at EndNPR 2.16 Cr
Equity BuiltNPR 62.50 L
Net Position (Gain / Loss)NPR 57.45 L
Positive = Property is worth more than you paid (gain)
Renting Costs
Total Rent PaidNPR 66.32 L
Security DepositNPR 1.20 L
Total CostNPR 67.52 L
Investment Opportunity
Down Payment InvestedNPR 25.00 L
Investment Value at EndNPR 1.28 Cr
Investment GainNPR 1.03 Cr
Net Position (Gain / Loss)NPR 60.46 L
Positive = Investments are worth more than rent paid (gain)
Key Insights
Total Savings
Renting saves you NPR 4.21 L compared to buying
Break-Even Point
Buying becomes cheaper after 1 years
Property Appreciation
Property value will be NPR 2.16 Cr in 10 years
Equity Building
You'll build NPR 62.50 L in equity by buying
Cost Comparison Over Time

Understanding the Graph:

  • Positive values (above zero) = You gained value (asset worth more than you paid)
  • Negative values (below zero) = Net loss (you paid more than asset is worth)
  • Buying: Property value - Total paid (positive = good!)
  • Renting: Investment value - Rent paid (positive = good!)

How This Calculator Works

We compare your net position after your chosen number of years – how far ahead or behind you are with buying vs renting.

  1. Buying path
    • Total paid = Down payment + EMI + maintenance + property tax + stamp duty + registration
    • Home value at end = Initial price × (1 + property appreciation)years
    • Buying net position = Home value at end − Total paid (positive = gain, negative = loss)
  2. Renting path
    • Rent paid = Monthly rent × 12 × years (with rent increases)
    • Investment value = Money you would use as down payment & fees, grown at your investment return
    • Renting net position = Investment value at end − Total rent paid
  3. Recommendation

    We recommend the option with the higher net position (bigger gain). If both are close, we highlight that the difference is small.

  4. Nepal context

    Defaults are tuned for Nepal (e.g. Kathmandu), but you can adjust all rates to match your bank offers, rent, and expectations.

Note: This is a financial comparison tool. Also consider lifestyle, stability, and future plans before deciding.