Compares the net financial outcome of buying a home (paying EMI, building equity) against renting and investing the EMI-minus-rent difference in the market, over the same period.
This calculator compares two paths over the same number of years: buying a home (paying EMI, and ending up owning a property that's appreciated in value) versus renting and investing the monthly difference between what you'd pay in EMI and what you'd pay in rent. Both paths also grow your initial down payment amount — as home equity in the buying scenario, or as an investment in the renting scenario.
The comparison is sensitive to your assumptions — particularly how fast you expect home prices to rise versus how well you expect your investments to perform. Small changes in these assumptions can flip which option comes out ahead, so it's worth testing a few different scenarios.
No — Section 24 (interest deduction) and Section 80C (principal deduction) tax benefits on home loans aren't included here, and could meaningfully improve the buying scenario for old-regime taxpayers. Use the Income Tax Calculator alongside this for a fuller picture.
These aren't included in this comparison — ongoing home maintenance, society charges, and property tax are real costs of ownership that would need to be factored in separately for a complete comparison.
Not necessarily — it depends heavily on home price growth versus investment returns in your specific market and time period, plus factors like job mobility and lifestyle flexibility that aren't purely financial.