Rent vs Buy Calculator

Use this free rent vs buy calculator to see whether buying a home or renting one works out cheaper over the years you actually plan to stay.

Rent vs Buy Calculator

Compare the real cost of buying a home against renting one over the years you plan to stay. All amounts in the same currency.

The home you would buy

Home price i

Down payment: 20% i

Financing rate: 18%/yr i

Loan term: 20 years i

Renting instead

Monthly rent for a similar home i

Your assumptions

Years you will stay: 7 i

Home price growth: 5%/yr i

Rent increase: 8%/yr i

If invested, the down payment earns: 12%/yr i

Over your stay

Net cost to buy

Net cost to rent

Difference

A simplified estimate to guide the decision, not a precise forecast. "Net cost to buy" counts your down payment, installments and upkeep, minus the equity you keep. "Net cost to rent" counts rent paid, minus what your down payment could earn if invested instead. Real results depend on prices, rates and how long you stay. For the halal route, see Islamic home financing.

How it works

The tool compares two paths. Buying counts your down payment, the financing installments, and upkeep, then subtracts the equity you keep as the home gains value. Renting counts the rent you pay (rising each year), then subtracts what your down payment could earn if you invested it instead. The single biggest factor is how long you stay: buying usually wins over long periods because you keep the asset, while renting often wins for short stays. For the halal route, see how home loans work and Sharia-compliant mortgages.

Frequently asked questions

Is it better to rent or buy in Pakistan?

It depends on how long you will stay, the price-to-rent ratio in your area, and the financing rate. Rental yields in Pakistan are often low relative to prices, which can favour renting for shorter stays, while buying tends to win the longer you stay. Run your own numbers above.

What down payment should I enter?

Use what you can realistically pay upfront. Commercial home financing in Pakistan often needs a fifth to a third of the price, while some government schemes need less. A larger down payment lowers the loan and the markup you pay.

Does this include maintenance and taxes?

It includes a simple yearly upkeep estimate (about 1% of the home value) to stand in for maintenance, and you can adjust the other assumptions. It does not model every transaction tax, so treat the result as a guide and confirm costs locally.

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Educational tool only. Not financial, tax or religious advice.