Budget and cash flow
Renting or owning a home calculator
Compare what renting and owning a home leave you out of pocket over the years.
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- Owning leaves you with the lower net cost on these figures.
Difference in net cost
PKR 3,762,159.32
- Owning: what you pay out
- PKR 31,282,359.60
- Owning: what you keep (the home less the loan)
- PKR 30,119,561.14
- Renting: what you pay out
- PKR 15,299,927.62
- Renting: what you keep (the down payment, grown)
- PKR 10,374,969.84
- Monthly loan instalment
- PKR 210,686.33
How it is calculated
Owning pays out the down payment, the loan instalments for the years you live there, and the yearly upkeep. It keeps the price grown by the yearly growth, less what is still owed on the loan.
Renting pays out the rent for those years, raised each year. It keeps the down payment, invested at the yearly return.
Net cost = what you pay out - what you keep. The difference is the gap between the two net costs.
Each figure is worked out exactly and rounded to the paisa once.
Assumptions
- A down payment of 20%, a loan at 15% a year, and the home's price growing by 8% a year. If the loan is shorter than the years you live there it is paid off and stops.
- The rent rises by 10% a year and the down payment earns 10% a year, added each year.
- Only the down payment is invested if you rent. A difference between the instalment and the rent is not.
- Buying and selling costs, taxes on gains and the cost of moving are not included.
Results are worked out from the figures you enter and are only estimates. They are not advice.
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