Rent vs. Buy Calculator

Compare the long-term financial impact of renting versus buying a home based on your specific situation.

Home Purchase

$
%

$100,000 (20.0%)

%

Loan Amount: $400,000

Rent

$
% / year
$/ month
$

Returned at end of analysis period

$

Application fees, first/last month, etc.

Customize all buying and selling costs

Using standard assumptions:

  • • Investment return: 5%
  • • Federal tax rate: 25%
  • • State tax rate: 0%
  • • Filing status: Married Filing Jointly
  • • Property tax: 1.5%
  • • Home appreciation: 3%
  • • Maintenance: 1.5%
  • • Selling costs: 7%

Compare Renting vs. Buying

Enter the details of your potential home purchase and rental options to see which makes more financial sense.

Understanding the Rent vs. Buy Decision

Factors That Favor Buying

  • Long-term stability: Planning to stay in one location for 5+ years
  • Building equity: Mortgage payments build ownership over time
  • Tax benefits: Deduct mortgage interest and property taxes
  • Appreciation potential: Benefit from home value increases
  • Fixed payments: Principal & interest remain constant with fixed-rate loans

Factors That Favor Renting

  • Greater flexibility to relocate for career or lifestyle changes
  • No maintenance costs or surprise repair expenses
  • Lower upfront costs - no down payment required
  • Investment flexibility - money not tied up in home equity
  • In high price-to-rent ratio markets, renting often makes financial sense