Rent vs Buy Calculator
Compare the financial benefits of renting versus buying a home to make an informed housing decision.
Buying Details
Renting Details
General Assumptions
Monthly Costs
Monthly Cost - Buying
Monthly Cost - Renting
Net Worth Analysis
Buyer Net Worth
Renter Net Worth
Net Worth Difference
Understanding the Rent vs Buy Decision
Deciding whether to rent or buy a home is one of the biggest financial decisions you'll make. This calculator helps you compare the financial outcomes of both options over your planned timeframe.
Key Factors to Consider
- Length of Stay: The longer you plan to stay, the more buying makes financial sense. Short-term stays often favor renting.
- Market Conditions: Local real estate trends, interest rates, and rental market dynamics all play crucial roles.
- Total Costs: Homeownership includes mortgage, taxes, insurance, maintenance, and repairs. Renting includes rent and renters insurance.
- Investment Opportunity: Money saved by renting (down payment) can be invested for potential returns.
- Lifestyle Flexibility: Renting offers mobility; buying builds equity but requires commitment.
When Should You Buy vs Rent?
Buying Makes Sense When
- • You plan to stay in the area for at least 5-7 years
- • You have stable income and good credit
- • You can afford 20% down payment to avoid PMI
- • Monthly mortgage payments are comparable to rent
- • The local real estate market is stable or appreciating
- • You want to build equity and have a fixed housing cost
Renting Makes Sense When
- • You plan to relocate within the next few years
- • You don't have sufficient savings for a down payment
- • You prefer flexibility and minimal maintenance responsibilities
- • The local housing market is overpriced or unstable
- • You want to invest your capital in other opportunities
- • Your income is variable or uncertain
Hidden Costs of Homeownership
Beyond the monthly mortgage payment, homeownership includes many additional costs:
Upfront Costs
- • Down payment (typically 20%)
- • Closing costs (2-5% of purchase price)
- • Home inspection ($300-$500)
- • Moving expenses
Ongoing Costs
- • Property taxes (1-2% of home value annually)
- • Homeowners insurance ($1,000-$3,000/year)
- • Maintenance (1-2% of home value annually)
- • HOA fees (if applicable)
- • PMI (if down payment less than 20%)
Note: This calculator provides estimates based on the information you enter. The actual financial outcome of renting vs buying depends on many factors including market conditions, tax implications, and personal circumstances. Consult with a financial advisor for personalized advice.
Recommended Calculator
Casio FX-991ES Plus
The professional-grade scientific calculator with 417 functions, natural display, and solar power. Perfect for students and professionals.
View on Amazon