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 10,00,000NPR 5,00,00,000
NPR
NPR 5,000NPR 2,00,000
Loan Details
%(NPR 25,00,000)
10%50%
%
5%20%
Years
5 Years30 Years
Time Horizon & Assumptions
Years
1 Year30 Years
%
0%20%
%
0%15%
%
5%20%
Recommendation: Rent
NPR 4,20,790 Cost Difference
Savings Percentage
2.7%
Monthly Difference
+NPR 47,868
EMI - Rent
Break-Even Year
Year 1
When buying becomes cheaper
Buying Costs
Down PaymentNPR 25,00,000
Loan AmountNPR 75,00,000
Monthly EMINPR 87,868
Total EMI PaidNPR 1,05,44,181
Total InterestNPR 30,44,181
MaintenanceNPR 15,00,000
Property TaxNPR 10,00,000
Stamp DutyNPR 2,00,000
Registration FeeNPR 1,00,000
Total PaidNPR 1,58,44,181
Property Value at EndNPR 2,15,89,250
Equity BuiltNPR 62,50,000
Net Position (Gain / Loss)NPR 57,45,069
Positive = Property is worth more than you paid (gain)
Renting Costs
Total Rent PaidNPR 66,31,895
Security DepositNPR 1,20,000
Total CostNPR 67,51,895
Investment Opportunity
Down Payment InvestedNPR 25,00,000
Investment Value at EndNPR 1,27,97,753
Investment GainNPR 1,02,97,753
Net Position (Gain / Loss)NPR 60,45,858
Positive = Investments are worth more than rent paid (gain)
Key Insights
Total Savings
Renting saves you NPR 4,20,790 compared to buying
Break-Even Point
Buying becomes cheaper after 1 years
Property Appreciation
Property value will be NPR 2,15,89,250 in 10 years
Equity Building
You'll build NPR 62,50,000 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.