Rent or Buy Calculator
Compare the total costs of renting vs buying a home over time to make an informed decision
Analysis Period & Available Funds
How long you plan to live in the property
Cash for down payment (buy) or savings (rent)
Renting Costs
Monthly rental payment (excluding utilities)
One-time fee paid to rental agent
Moving, deposits, renter's insurance, etc.
Annual interest rate on your savings
Buying Costs
Total purchase price of the property
Annual interest rate on your mortgage
Number of years to pay off the loan
Expected annual property value growth
Closing costs, agent fees, etc.
Real estate fees when selling
Property taxes, insurance, maintenance, etc.
Cost Comparison Results
Recommendation
Renting is 15.0% cheaper over 5 years.
Renting Costs
Buying Costs
Financial Summary
Loan amount: $350,000
Monthly mortgage: $1879
Remaining balance: $321,400.562
Property value after 5 years: $441,632.321
Total appreciation: $41,632.321
Cost difference: $17,668.991
Example Scenario
Young Professional Moving to New City
Scenario: 5-year stay, $50,000 available, comparing $2,000/month rent vs $400,000 home
Rent costs: Monthly rent, moving costs, agent fees, minus interest earned on savings
Buy costs: Down payment, mortgage, taxes, insurance, maintenance, minus net sale proceeds
Key Factors to Consider
• Length of stay (longer favors buying)
• Down payment amount (affects mortgage)
• Property appreciation rate (market dependent)
• Interest rates (both mortgage and savings)
• Transaction costs (buying/selling fees)
Key Decision Factors
Time Horizon
Staying 5+ years often favors buying
Financial Stability
Steady income and emergency fund
Market Conditions
Property prices and interest rates
Lifestyle Flexibility
Career mobility and family plans
Beyond the Numbers
Buying: Stability, equity building, tax benefits
Renting: Flexibility, no maintenance, lower upfront costs
Consider maintenance responsibilities
Factor in opportunity costs
Pride of ownership vs flexibility
Understanding Rent vs Buy Analysis
How We Calculate Renting Costs
- •Monthly rent payments over the entire period
- •Agent commission and moving costs
- •Other setup costs (deposits, insurance, etc.)
- •Minus interest earned on your savings
When Renting Makes Sense
- •Short-term stay (less than 3-5 years)
- •High property prices relative to rent
- •Need for flexibility and mobility
- •Limited funds for down payment
How We Calculate Buying Costs
- •Down payment (your available cash)
- •Monthly mortgage payments over the period
- •Transaction costs (buying and selling fees)
- •Annual expenses (taxes, insurance, maintenance)
- •Minus net sale proceeds after mortgage payoff
When Buying Makes Sense
- •Long-term stay (5+ years)
- •Stable income and sufficient down payment
- •Property appreciation expected
- •Desire for stability and customization
Note: This analysis focuses on financial costs. Consider personal preferences, lifestyle needs, and market conditions when making your decision.