Rent vs Buy Calculator

Compare the long-term costs of renting versus buying a home

Home Purchase

Home Price: $400,000

Down Payment: $80,000 (20.0%)

Interest Rate: 6.5%

Loan Term: 30 years

Property Tax Rate: 1.2%

Monthly HOA: $200

Maintenance: 1% annually

Home Appreciation: 3% annually

Renting

Monthly Rent: $2,000

Annual Rent Increase: 3%

Investment Return: 7% annually

Timeline

Years to Compare: 10

Comparison Results (After 10 Years)

Buying

Monthly Payment:$2956

Total Paid:$434,714

Home Equity:$537,567

Net Cost:$-102,852

Renting

Starting Monthly Rent:$2000

Total Rent Paid:$275,133

Investments:$157,372

Net Cost:$117,761

Recommendation

Buying is better by $220,613

This assumes you invest the down payment if renting, and factors in home appreciation and investment returns.

Note: This calculator provides estimates for comparison purposes. Actual costs may vary based on location, market conditions, and personal circumstances. Consider consulting a financial advisor for personalized advice.