Rent vs Buy Comparison

Required Inputs

Home Price

Down Payment (%)

Mortgage Rate (%)

Property Tax (Annual)

Home Insurance (Annual)

Maintenance (% of home value)

Home Appreciation Rate (%)

Monthly Rent

Annual Rent Increase (%)

Years to Compare

Investment Return (%) Return on down payment if invested instead

Optional Inputs

Renters Insurance (Annual)

Comparison Summary

Better Choice

Cost Difference

Total Cost to Buy

Total Cost to Rent

Home Equity Built

Home Value (End)

Understanding Rent vs Buy

Advantages of Buying

Build equity over time

Potential for home appreciation

Fixed monthly payment (with fixed-rate mortgage)

Tax deductions for mortgage interest and property taxes

Freedom to customize and renovate

Advantages of Renting

Lower upfront costs

More flexibility to relocate

No maintenance or repair costs

No property tax burden

Can invest down payment money elsewhere

Hidden Costs of Homeownership

Closing costs: 2-5% of home price

Maintenance: 1-2% of home value annually

HOA fees (if applicable)

Property taxes and insurance

Utilities (often higher than apartments)

Rent vs Buy Calculator