🔄 Rent vs Buy Calculator
Compare the true costs of renting versus buying a home over time
Property Details
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Or 20% of home price
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Mortgage Details
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Usually 1% of home value annually
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Growth & Investment
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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.
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.