Does the rent vs. buy calculator consider down payment and closing costs?

Yes, a rent vs. buy calculator typically considers both down payment and closing costs when evaluating the financial implications of renting versus buying a home. Here’s how these factors are integrated into the calculations:

1. Down Payment: This is a significant upfront cost when purchasing a home. Most calculators allow users to input the percentage of the home price they plan to put down. For example, if you are buying a home worth ₹50,00,000 and plan to make a 20% down payment, you would need to input ₹10,00,000.
2. Closing Costs: These are additional expenses incurred during the home-buying process, usually ranging from 2% to 6% of the loan amount. The calculator will factor in these costs to provide a more accurate comparison. For instance, if your closing costs are 3% on a ₹50,00,000 home, that would add another ₹1,50,000 to your initial expenses.

By including these costs, the calculator helps users understand the total financial commitment involved in buying a home compared to renting.