🏠 Home Loan vs Rent
Run two parallel financial scenarios: buying with a home loan vs. renting and investing the saved cash. Discover which path yields higher net worth using the Opportunity Cost Framework.
Property Details
₹1 Lakh - ₹10 Crore
5% - 100%
Frequently Asked Questions
What is the Opportunity Cost Framework?
It compares two paths: buying a property with a loan vs. renting and investing the saved cash (down payment + EMI difference) in equity/mutual funds. The richer path wins financially.
Why does the calculator invest the down payment on Day 1?
Because if you rent instead of buying, you avoid the large down payment. That money can grow in investments. This opportunity gain compounds over 20+ years.
When does renting mathematically beat buying?
When the investment returns on the saved capital exceed the property appreciation rate. If homes appreciate 6% but your equity fund returns 12%, renting + investing wins.
What is Section 24(b) and how does it help?
Indian homeowners can deduct up to ₹2,00,000 of loan interest per year from taxable income. This tax savings reduces the buyer's effective cost. Check the toggle to see the impact.
Is a 20-year projection accurate?
No projection is certain, but 20 years is a meaningful horizon for long-term financial decisions. Use this as a guide, not gospel. Real outcomes depend on actual market returns and personal circumstances.