About the EMI vs Rent Comparison Calculator
What is the EMI vs Rent Comparison Calculator?
A home loan EMI is usually much higher than rent for the same home today, but the EMI is fixed while rent rises every year. This EMI vs rent calculator shows when rent catches up.
Enter the loan, rate, tenure, current rent and expected rent increase to see the crossover year and the totals over the loan period.
How to use the EMI vs Rent Comparison Calculator
- Home Loan Amount (₹) (sample: 64,00,000)
- Loan Rate (% per year) (sample: 8.5)
- Loan Tenure (years) (sample: 20)
- Current Monthly Rent (₹) (sample: 25,000)
- Rent Increase (% per year) (sample: 6)
- Press Compare EMI with Rent (results also refresh as you type). The result card shows the Rent Overtakes the EMI In, along with Monthly EMI (fixed), Current rent, Total EMIs over the loan and Total rent over the same period.
Formula used
Rent in year t = Current rent × (1 + g)ᵗ⁻¹; EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- g = yearly rent increase
- P, r, n = loan amount, monthly rate and number of months
Floating-rate EMIs can change with interest rates; this assumes the rate stays the same.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Home Loan Amount (₹) | 64,00,000 |
| Loan Rate (% per year) | 8.5 |
| Loan Tenure (years) | 20 |
| Current Monthly Rent (₹) | 25,000 |
| Rent Increase (% per year) | 6 |
| Result | Value |
|---|---|
| Rent Overtakes the EMI In | Year 15 |
| Monthly EMI (fixed) | ₹55,541 |
| Current rent | ₹25,000 |
| Total EMIs over the loan | ₹1,33,29,765 |
| Total rent over the same period | ₹1,10,35,677 |
| Rent in the final year | ₹75,640 |
Tips for using the EMI vs Rent Comparison Calculator
- Rents in Indian cities typically rise 5–10% a year at renewal.
- The EMI buys an asset; rent does not – but the EMI also carries interest, which is a real cost.