Rent vs Buy Calculator

Compare the costs of renting versus buying a home to determine which option makes more financial sense for your situation. This calculator considers all costs including mortgage payments, taxes, insurance, maintenance, and investment returns.

Home Purchase

Home price: $

Down payment: %

Interest rate: %

Loan term: years

Buying closing costs: %

Property tax: % / year

Property tax increase: % / year

Home insurance: $ / year

HOA fee: $ / year

Maintenance cost: % / year

Home value appreciation: % / year

Cost/insurance increase: % / year

Selling closing costs: %

Home Rent

Monthly rental fee: $

Rental fee increase: % / year

Renter's insurance: $ / month

Security deposit: $

Upfront cost: $

Your Information

Average investment return: %

Marginal federal tax rate: %

Marginal state tax rate: %

Tax filing status:

Rent vs Buy Comparison

Enter your details and click "Calculate" to see the comparison results.

About the Rent vs Buy Calculator

This calculator helps you compare the total costs of renting versus buying a home over time. It considers all the financial factors involved in both options to help you make an informed decision based on your specific situation.

How the Calculator Works

The calculator performs a comprehensive analysis by:

Calculating all costs associated with buying a home (mortgage payments, taxes, insurance, maintenance, etc.)
Calculating all costs associated with renting (monthly rent, renters insurance, security deposit, etc.)
Considering the opportunity cost of your down payment and other upfront costs if invested elsewhere
Accounting for appreciation of home value and rental price increases
Including tax benefits of homeownership (mortgage interest and property tax deductions)
Projecting the net costs over time to determine which option is more financially advantageous

Key Factors to Consider

When deciding whether to rent or buy, consider these important factors:

Time Horizon: Buying typically becomes more favorable the longer you stay in the home (usually 5+ years)
Market Conditions: Compare current home prices to rental prices in your area
Interest Rates: Higher mortgage rates make buying relatively less attractive
Tax Situation: The value of mortgage interest deductions depends on your tax bracket
Investment Alternatives: Consider what return you could earn by investing your down payment elsewhere
Lifestyle Preferences: Beyond finances, consider your desire for stability vs flexibility

Limitations of the Calculator

While this calculator provides a detailed financial comparison, it doesn't account for:

Emotional or psychological benefits of homeownership
Potential for unexpected major repairs when owning
Changes in personal circumstances (job relocation, family changes)
Extreme market fluctuations not captured by the appreciation rate
Potential for rental property to be sold or rent to increase dramatically