Buy vs Rent Calculator
General Information
Length of time affects break-even analysis
%
Typical range: 2% to 5%
🏠 Buying
$
$
20.0% of home price
%
Current typical range: 6% to 8%
%
Typical range: 0.5% to 2.5%
$
Typical range: 0.2% to 0.5% of home value
$
%
Typical range: 2% to 5% of home price
%
Typical range: 5% to 7% of sale price
$
Typical range: 1% to 3% of home value
$
Use negative if you save on utilities vs renting
🏢 Renting
$
%
Typical range: 2% to 5%
%
Stock market avg: 7% to 10%
Expected return on down payment if invested
%
Historical avg: 2% to 3%
$
Usually 1-2 months of rent
$
One-time fee, varies by location
$
Typical range: $100 to $400
📋 Tax Information
Whether to itemize and take mortgage interest deduction
Financial Analysis
Total Buy Costs
$272,330
Net Proceeds After Selling Home
$164,155
Net Buy Costs
-$108,176
Total Rent Costs
$165,274
Rent Payment Difference Fund Value
$146,892
Net Rent Costs
-$18,382
Final Difference
Rent +$89,794
🏢 Renting is recommended
You'll be ahead by $89,794 after 5 years by renting
Amortization Calculator
| Year | Principal | Interest | Property Tax | Home Insurance | HOA Fees | Maintenance | Utilities | Annual Buy Cost | Cumulative Total Buy Cost | Home Value | Pending Loan Balance | Home Appreciation | Total Net Equity | Net Buying Cost | Rent | Renter's Insurance | Annual Rent Cost | Cumulative Total Rent Cost | Cumulative Payment Difference Fund | Net Renting Cost | Difference | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $3,577 | $20,695 | $4,800 | $1,200 | $0 | $5,000 | $600 | $125,871 | $125,871 (incl. $80k down + $10k closing) | $412,000 | $316,423 | $12,000 | $95,577 | $30,295 | $30,000 | $200 | $35,200 | $35,200 (Includes security deposit and broker fee) | $97,018 (Annual Buy Cost - Annual Rent Cost) × Investment Return | -$61,818 | Rent +$92,113 | ||
| 2 | $3,816 | $20,455 | $4,920 | $1,230 | $0 | $5,125 | $615 | $36,161 | $162,033 | $424,360 | $312,607 | $24,360 | $111,753 | $50,280 | $30,900 | $200 | $31,100 | $66,300 | $109,225 | -$42,925 | Rent +$93,205 | ||
| 3 | $4,072 | $20,200 | $5,043 | $1,261 | $0 | $5,253 | $630 | $36,459 | $198,491 | $437,091 | $308,535 | $37,091 | $128,556 | $69,936 | $31,827 | $200 | $32,027 | $98,327 | $121,613 | -$23,286 | Rent +$93,222 | ||
| 4 | $4,345 | $19,927 | $5,169 | $1,292 | $0 | $5,384 | $646 | $36,763 | $235,255 | $450,204 | $304,191 | $50,204 | $146,013 | $89,242 | $32,782 | $200 | $32,982 | $131,309 | $134,172 | -$2,863 | Rent +$92,105 | ||
| 5 | $4,636 | $19,636 | $5,298 | $1,325 | $0 | $5,519 | $662 | $37,076 | $272,330 | $463,710 | $299,555 | $63,710 | $164,155 | $108,176 | $33,765 | $200 | $33,965 | $165,274 | $146,892 | $18,382 | Rent +$89,794 |