Financial Analysis

Should you Rent or Buy?

Make confident housing decisions with comprehensive financial analysis. Our calculator gives you a clear picture of every cost involved, from monthly rent or mortgage payments to taxes, insurance, and maintenance. Compare different scenarios side by side and understand how opportunity costs, investment returns, and long-term savings impact your decision.

Complete financial breakdown, including monthly rent/mortgage, utilities, insurance, and maintenance costs

Tax-aware calculations that consider deductions, credits, and property taxes

Opportunity cost analysis to see how investments or savings could grow over time

Professional insights to guide informed decisions tailored to your unique situation

Side-by-side comparisons of renting vs buying for different scenarios

Customizable inputs to reflect your personal finances and goals

Interactive results with charts, graphs, and visualizations for clarity

Calculate Your Rent vs Buy Costs

Enter your values below to see a detailed comparison of renting versus buying. Adjust home price, mortgage details, and other parameters to find out which option is better for you.

Property Information

Enter the home price and how long you plan to stay in the property.

The purchase price of the home you're considering

$500,000

How long do you expect to own this home?

5 years

Mortgage Details

Configure your down payment, loan term, and interest rate.

Percentage of home price you'll pay upfront

20%($100,000)

Number of years to repay the mortgage

30 years

Annual mortgage interest rate

6.00%

Annual private mortgage insurance as percentage of loan amount

0.00%

Rental Information

Enter rental market details for comparison.

Current monthly rent for an equivalent property

$2,000

Upfront security deposit (typically one month's rent)

$2,000

Annual cost of renter's liability insurance

$240

One-time rental broker fee, if applicable

$0

Annual Ownership Costs

Recurring expenses paid each year as a homeowner.

Annual property tax as a percentage of home value

1.20%($6,000/yr)

Annual homeowners insurance as a percentage of home value

0.35%($1,750/yr)

If applicable, monthly homeowners association fees

$0

Annual maintenance costs as a percentage of home value (typically 1-2%)

1.00%($5,000/yr)

Monthly utility costs compared to renting

$300

One-Time Buying Costs

Include closing costs for purchase and sale, plus any initial remodeling.

As a percentage of home purchase price (typically 2-5%)

3.00%

As a percentage of eventual sale price (typically 6-10%)

6.00%

Any renovation or repair costs in the first year

$0

Growth Assumptions

Set expected growth rates for various financial factors.

Expected annual appreciation rate of the property

3.0%

Expected annual increase in property taxes

0.0%

Expected annual increase in rental prices

3.0%

General inflation for cost of living adjustments

2.5%

Expected annual return on alternative investments

5.0%

Tax Assumptions

Configure tax parameters for accurate calculations.

Your federal income tax bracket

25%

Tax rate on investment income and capital gains

15%

Affects standard deduction and tax brackets

Additional itemized deductions not related to the home

$0

Your annual adjusted gross income for calculating income tax

$0

Annual state income tax for calculating income tax

$0

Summary

Rent - After 5 Years

Starting Costs$2,000
Recurring Costs$128,693
Opportunity Costs$11,532
Net Proceeds-$2,000
Total Spend$140,226

Buy - After 5 Years

Starting Costs$115,000
Recurring Costs$213,958
Opportunity Costs$45,307
Net Proceeds-$172,641
Total Spend$201,623

Recommendation

Renting is $61,398 cheaper than buying.

Total cost to buy: $201,623 vs rent: $140,226

Cumulative Cost Over Time