Rent vs Buy Calculator Nepal
Renting or buying in Kathmandu, Pokhara or beyond? Compare true net costs over the same years — not just monthly rent vs EMI.
Renting
Buying
% of purchase price, per year
Registration, broker, initial repairs
Verdict
Cheaper option
—
Cumulative Net Cost Over Time
Where the lines cross, buying starts winning. Lower line = cheaper.
Year-by-Year Comparison — view yearly breakdown
| Year-end | Rent Paid So Far | Buying Net So Far |
|---|
Rent vs buy in Nepal
In Kathmandu Valley, rents for a decent flat often run Rs. 20,000–60,000 a month while similar properties sell for crores — so the monthly comparison (rent vs EMI) misleads. The EMI only looks slightly higher than rent, but buying also demands a large down payment, registration and transfer costs, maintenance, and years of interest — while building equity and escaping rent hikes. This calculator puts both sides on equal footing over the same horizon.
How the comparison works
Renting cost is simply all rent paid, growing each year at your assumed increase. Buying cost is everything you pay — down payment, one-time purchase costs, EMIs and maintenance — minus what you own at the end (the appreciated home value less the remaining loan). That subtraction is the key step: without it you would compare rent against a house you partly own, which is not a fair fight.
When does buying win?
Buying usually pulls ahead when you stay long enough for equity to outweigh the heavy upfront costs — often around 7–12 years — especially if rents rise fast. It loses when the horizon is short, the price-to-rent ratio is extreme, loan rates are high, or appreciation disappoints. Check the breakeven year: if it falls beyond your realistic stay, keep renting.
Frequently Asked Questions
Should I rent or buy a house in Kathmandu?
There is no universal answer — it depends on rent levels, property prices, loan rates and how long you will stay. As a rule of thumb, buying usually wins if you will stay put for 7–10+ years and the annual rent is a high fraction of the property price; renting wins for short stays or when prices are stretched. Enter your own numbers above instead of guessing.
How does this calculator compare renting and buying?
Both sides are reduced to "money you never get back" over the same horizon. Renting cost is total rent paid with yearly increases. Buying cost is down payment + one-time purchase costs + EMIs paid + maintenance, minus your equity at the end (home value minus remaining loan). The lower net cost wins.
What is the breakeven year?
The first year when buying becomes cheaper than renting cumulatively. Buying starts behind (down payment + purchase costs) and catches up as rent keeps rising while each EMI builds equity. If the line says "no breakeven in 30 years", renting stays cheaper under your assumptions.
What buying costs should I include for Nepal?
Beyond the down payment: land/property registration and transfer fees at the Land Revenue Office, broker commission if any, and early maintenance or renovation. Rates and slabs vary by location and change over time, so the calculator takes them as one adjustable percentage — check current fees for your municipality.
How much down payment do Nepali banks require?
Banks finance only part of a property's value (loan-to-value limits set by Nepal Rastra Bank, historically stricter inside Kathmandu Valley). Expect to arrange a substantial down payment yourself — commonly 20–40%+ depending on the property and current rules. Confirm the current LTV with your bank and enter it above.
How sensitive is the result to price appreciation?
Very. A 2–3 point change in assumed annual appreciation can flip the verdict on expensive properties, because appreciation compounds on the full home value. Treat appreciation as a guess, not a promise — try the calculation with 0% and with an optimistic rate to see the range.
Is renting just throwing money away?
No. Rent buys flexibility (move for jobs, no maintenance headaches) and keeps your down payment free for other uses. Buying builds equity but locks you in and concentrates risk in one property. The calculator compares the money; only you can weigh the lifestyle side.
Can I share my comparison with family?
Yes — every input is mirrored in the page address, so use the "Copy result link" button and send it on Viber, Messenger or Facebook. Whoever opens it sees the same inputs and verdict. Nothing is uploaded or stored anywhere.
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