🔄 Rent vs Buy Calculator

Compare the true costs of renting versus buying a home over time

💡 Rent vs buy decision

This calculator compares the long-term financial impact of renting versus buying a home under different assumptions.

Important for new homeowners:

  • Buying can build equity, but it also carries high upfront and ongoing costs
  • Renting offers flexibility, while buying rewards long-term stability
  • Investment return and appreciation assumptions can drastically change the outcome
  • Time horizon matters more than any single monthly payment

🏠 Property Details & Mortgage Inputs

Property Details
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$
Or 20% of home price
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%
Mortgage Details
%
$
$
$
Usually 1% of home value annually
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Growth & Investment
%
Historical average: 3-4%
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If renting, invest the difference
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Realtor fees, etc.
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Estimate only. This comparison uses assumed appreciation rates, investment returns, and cost averages that may not reflect your local market or personal finances. The "winner" shown is a mathematical estimate, not a recommendation. Consult a financial advisor or real estate professional before making a purchase decision.
Better Financial Choice

RENTING

🏠 Buying
Total Cost $0
Home Value $0
Mortgage Paid $0
Equity Built $0
Net Worth $0
🏘️ Renting
Total Rent Paid $0
Invested Savings $0
Investment Growth $0
Down Payment Invested $0
Net Worth $0
Net Worth Over Time
💡 Key Insights

Factors to Consider: Rent vs Buy

✅ When Buying Makes Sense
  • Planning to stay 5+ years in the same location
  • Have stable income and job security
  • Can afford 20% down payment
  • Local home prices are reasonable relative to rent
  • Want to build equity and own an asset
  • Desire stability and freedom to customize
✅ When Renting Makes Sense
  • Planning to move within 5 years
  • Career or life situation is uncertain
  • Don't have savings for down payment
  • Local home prices are very high relative to rent
  • Want flexibility and no maintenance responsibility
  • Prefer investing savings in other opportunities
📊 Hidden Costs of Buying

Beyond the mortgage payment, homeownership includes: property taxes (1-2% annually), home insurance ($1,000-2,000/year), maintenance (1% of home value), HOA fees, closing costs (2-5%), and selling costs (6-10% when you sell).

💰 The 5-Year Rule

Financial experts generally recommend staying in a home at least 5 years to break even on buying costs. This allows time to build equity and recoup closing/selling costs through home appreciation.

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