How it’s calculated
- Buying: the loan is the home price minus the down payment. The EMI uses the standard formula (see the EMI calculator), and the total paid is EMI × number of months.
- Renting: rent is added up year by year for the same period, rising by your yearly rent increase.
- The option with the lower total is shown as cheaper.
Not included: the down payment itself, property appreciation, maintenance, stamp duty, tax benefits on home loans, and returns you could earn by investing the down payment. These can change the answer, so use this as a first comparison.