Compare HRA vs Home Loan Benefits
Compare tax benefits of renting with HRA vs buying with home loan
Input Details
Enter salary, HRA, and home loan details
Home Loan Details
About HRA vs Home Loan Calculator
Compare tax benefits of renting (with HRA exemption) vs buying a home (with home loan tax deductions). This helps you make an informed decision based on your financial situation.
Key Considerations
- HRA: Exemption on rent paid, no asset creation
- Home Loan: Interest (₹2L) + Principal (₹1.5L) deductions, asset creation
- Consider liquidity, job stability, and long-term goals
- Factor in property appreciation and maintenance costs
Frequently Asked Questions
HRA (House Rent Allowance) provides tax exemption on rent paid. Exemption is minimum of: actual HRA received, actual rent minus 10% of salary, or 50% of salary (metro) / 40% (non-metro).
Home loan provides tax deductions: Section 24(b) - up to ₹2 lakhs on interest, Section 80C - up to ₹1.5 lakhs on principal repayment, and Section 80EE/80EEA for first-time home buyers.
Depends on your situation. Renting with HRA is better if you move frequently, property prices are high, or you invest savings elsewhere. Buying is better for stability, asset creation, and long-term wealth.
For HRA: Calculate exemption amount and multiply by your tax slab. For home loan: Add interest deduction (Section 24) + principal deduction (Section 80C) and multiply by tax slab. Compare both scenarios.