Calculator Methodology

• Interest rate applied as reducing balance — standard for all Indian home, car, and personal loans per RBI guidelines.
• EMI payments made at end of each month (ordinary annuity).
• Processing fees, prepayment charges, and insurance costs not included unless explicitly entered.

• Reducing balance method: RBI Master Direction on Interest Rate on Advances (RBI/2015-16/101)
• Current benchmark rates: RBI Policy Repo Rate communications

• Returns compounded monthly — standard for SIP projections per AMFI guidelines.
• Assumed rate of return is a hypothetical forward-looking estimate, not a guarantee. Historical Nifty 50 20-year CAGR: 12–15%; default used: 12%.
• No exit load, expense ratio, or tax drag deducted (illustrative purposes).
• SIP instalments assumed at the beginning of each month.

LTCG on equity mutual funds above ₹1.25 lakh/year is taxable at 12.5% (post Budget 2024). The calculator shows gross corpus — actual tax depends on individual withdrawal pattern.

• Health & Education Cess: 4% on (Tax + Surcharge)
• Surcharge (New Regime): 10% for ₹50L–₹1Cr; 15% for ₹1Cr–₹2Cr; 25% above ₹2Cr (capped at 25% per Finance Act 2023)
• Surcharge (Old Regime): 10% → 15% → 25% → 37% at respective thresholds

• New Regime: ₹75,000 (salaried/pensioners, Budget 2024)
• Old Regime: ₹50,000

Income Tax Act 1961 · Finance Act 2025 · CBDT Circular No. 1/2025

For property acquired before 23 July 2024, taxpayers may opt for 20% with indexation (old method) or 12.5% without indexation — whichever results in lower tax. For property acquired on or after 23 July 2024, only 12.5% without indexation applies.

Sections 45, 48, 111A, 112, 112A of the Income Tax Act · Finance Act 2024 · CBDT FAQs on Capital Gains (July 2024)

Uses a Net Present Value (NPV) framework to compare 10-year total cost of buying vs renting, discounted at the opportunity cost rate (default: 10–12%).

• Down payment (opportunity cost of locking capital)
• Home loan EMI (principal + interest, reducing balance)
• Property tax (~0.1–0.5% of property value annually, varies by city)
• Maintenance and society charges
• Stamp duty and registration (5–7% of property value, varies by state)
• Property appreciation (assumed CAGR — user-adjustable)

• Annual rent with assumed annual increase (default 5%)
• Investment return on saved down payment at opportunity cost rate

Compares 5-year Total Cost of Ownership (TCO) of an operating lease vs outright purchase (with/without auto loan), on an after-tax basis.

• Monthly lease rental × tenure
• Tax deductibility: lease rentals are typically deductible as a business expense for companies and self-employed individuals (subject to conditions)
• Residual value / buyback obligation if applicable

• On-road price (ex-showroom + registration + insurance + accessories)
• Depreciation: WDV method at 15%/year for individuals; 30% for business vehicles per Income Tax Act Schedule II
• Running and maintenance costs
• Resale value at end of holding period

5-year Total Cost of Ownership comparison between an EV and a petrol equivalent. Inputs: vehicle price, fuel/electricity cost, efficiency, insurance, maintenance, and battery replacement probability.

• Average electricity cost: ₹7–9/unit (home charging); ₹14–18/unit (public fast charging)
• Petrol price: user-adjustable, default ₹105/litre
• EV efficiency default: 6–7 km/kWh (varies by vehicle class)
• Battery replacement: not assumed within 5 years for vehicles with 8-year OEM warranty; flagged as a scenario for older vehicles
• FAME II subsidy: retained for commercial EVs; personal vehicle subsidies largely phased out — reflected in default pricing

• Interest compounds daily on revolving balances (standard Indian card practice)
• Minimum payment default: higher of ₹200 or 5% of outstanding balance (industry standard)
• Interest-free period (45 days) does not apply once any balance is revolved

RBI Master Direction on Credit Card and Debit Card (July 2022) — mandates interest rate disclosure in annualised form.