Rent vs Buy Calculator
Compare the true cost of renting versus buying a home
$
$
20% = $70,000
%
$
%
Cost Comparison
Total Rent Cost
$0
Total Buying Cost
$0
Home Equity Built
$0
Monthly Mortgage Payment
$0
Better Option
-
How This Calculator Works
This calculator compares the total costs of renting versus buying over your specified time period:
- Rent costs include monthly rent with annual increases
- Buying costs include mortgage payments, property taxes (~1.1%), insurance (~0.5%), and maintenance (~1%)
- Equity is the portion of your home you actually own after paying down the mortgage
The "better option" considers your net position: buying costs minus equity built versus total rent paid.
Key Assumptions
Property Tax Rate: 1.1% of home value/year
Home Insurance: 0.5% of home value/year
Maintenance: 1% of home value/year
Home Appreciation: 3% per year
Home Insurance: 0.5% of home value/year
Maintenance: 1% of home value/year
Home Appreciation: 3% per year
Did You Know?
- The average homeowner has 40x the net worth of the average renter ($255,000 vs $6,300).
- Hidden costs of homeownership add 3-4% of home value per year beyond the mortgage.
- Historically, home prices appreciate about 3-4% annually, roughly matching inflation.