Rent vs Buy Calculator
Should you rent or buy? Compare the total cost of renting versus buying a home over your chosen time horizon. This calculator accounts for rent increases, mortgage payments, property taxes, maintenance costs, and home appreciation to help you make the right decision.
Rent vs Buy Calculator
FAQ
How does the rent vs buy calculator work?
It compares the total cost of renting (with annual increases) against the net cost of buying (mortgage payments, taxes, maintenance minus home equity built). The option with the lower net cost over your time horizon is recommended.
What factors should I consider beyond this calculator?
Consider job stability, flexibility needs, local market conditions, opportunity cost of your down payment, tax deductions for mortgage interest, and personal lifestyle preferences. This calculator provides a financial comparison but not a complete picture.
How long do I need to stay for buying to make sense?
Generally, buying becomes more favorable the longer you stay. Most experts suggest at least 5-7 years to offset closing costs and build equity. Use this calculator with different time horizons to find your break-even point.