Back to calculators
Rent vs Buy Calculator
Compare the financial impact of renting vs buying a home with comprehensive cost analysis
Monthly: Buy
$2,837
Total monthly cost
Monthly: Rent
$2,317
Total monthly cost
Break-Even
1 years
When buying pays off
Recommendation
Buy
Financial analysis favors homeownership
Home Purchase Details
20.0% of home price
Monthly Buying Costs
Mortgage Payment: $1,770
Property Taxes: $350
Home Insurance: $100
Maintenance: $438
Utilities: $180
Total Monthly: $2,837
Rental Details
Monthly Renting Costs
Monthly Rent: $2,200
Renter Insurance: $17
Utilities: $100
Total Monthly: $2,317
Upfront Costs
Buying (Down + Closing): $80,500
Renting (Deposit + Moving): $6,400
Difference: $74,100
Analysis Settings
Opportunity Cost Analysis
Home Equity (10 years): $256,336
Invested Down Payment: $145,766
Net Difference: $110,570
Buying builds $110,570 more wealth
Recommendation: Buy
Financial analysis favors homeownership
Key Factors:
- • Break-even in 1 years favors buying
- • Building home equity outperforms investing difference
- • Long-term timeline favors building equity
Home Equity After 10 Years
Home Value: $493,710
Mortgage Balance: $237,373
Total Equity: $256,336
Year-by-Year Cost Comparison
| Year | Buying Cost | Renting Cost | Home Equity | Monthly Difference | Better Option |
|---|---|---|---|---|---|
| 1 | $39,047 | $27,800 | $85,380 | -$937 | Buy |
| 2 | $39,047 | $28,592 | $101,398 | -$871 | Buy |
| 3 | $39,047 | $29,408 | $118,083 | -$803 | Buy |
| 4 | $39,047 | $30,248 | $135,466 | -$733 | Buy |
| 5 | $39,047 | $31,113 | $153,579 | -$661 | Buy |
| 6 | $39,047 | $32,005 | $172,456 | -$587 | Buy |
| 7 | $39,047 | $32,923 | $192,132 | -$510 | Buy |
| 8 | $39,047 | $33,869 | $212,644 | -$432 | Buy |
| 9 | $39,047 | $34,843 | $234,032 | -$350 | Buy |
| 10 | $39,047 | $35,846 | $256,336 | -$267 | Buy |
Rent vs Buy Decision Guide
Consider Buying If:
- • You plan to stay 5+ years
- • You have stable income and job security
- • You can afford 20% down payment
- • Monthly payment is ≤28% of income
- • You want to build equity and tax benefits
- • You prefer stability and control
Consider Renting If:
- • You may relocate within 3-5 years
- • You prefer flexibility and mobility
- • You want predictable monthly costs
- • You don't want maintenance responsibilities
- • Local home prices are very high
- • You can invest the difference profitably