Loan Tax CalculatorRent vs Buy Calculator
Compare the true cost of renting versus buying a home over your expected time horizon. Account for appreciation, maintenance, and opportunity costs.
Projected advantage of buying
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- Total rent cost
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- Net cost of buying
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- Home equity built
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Assumes 2% annual rent increases, 3% closing costs, 1% of home value per year in maintenance, a 30-year mortgage, and 6% selling costs. A negative advantage means renting comes out ahead over this horizon.
Results are planning estimates based on the formula shown below. They are not a quote, a loan approval, or tax advice.
Worked example
- Buy
- $400,000 home, 20% down, 6% mortgage
- Rent
- $2,500/month
- Time Horizon
- 7 years
- Annual Home Appreciation
- 3%
- Break-Even Analysis shows break-even at approximately 5-6 years in most markets
How it works
Total Buy Cost = Down Payment + Closing Costs + (Monthly P&I + Taxes + Insurance + HOA + Maintenance) × Months + Selling Costs - Equity Accumulated - Home Value Appreciation. Total Rent Cost = Deposit + (Monthly Rent + Renter's Insurance) × Months + Rent Increases. Break-even point when cumulative buy cost equals cumulative rent cost.