Compare the total cash you would spend renting versus buying a home.
Adds up total rent paid over the period against the down payment plus all EMIs paid over the same period.
Rent cost: Monthly rent × 12 × years
Buy cost: Down payment + (EMI × 12 × years)
Does this account for the property's resale value?
No. This only compares the cash you spend. The property's eventual resale value is usually the biggest reason buying wins over the long run, but it is not included here.