Rent vs Buy Calculator
Compare the true monthly cost of owning — mortgage, tax, insurance, maintenance — against renting the same home.
Cost to own / month
$2,848
Breakdown
- Mortgage P&I
- $2,023
- Tax + insurance + upkeep
- $825.00
- Rent / month
- $2,000
- Own − rent
- $847.62
- Verdict
- Buying costs more per month
Last updated:
FAQ
Is it always better to buy long-term?
Not always. Buying builds equity but ties up your down payment and adds upkeep; renting stays cheaper whenever rent is well below ownership costs and the savings are invested. Compare over your expected stay, not forever.
What costs does this comparison miss?
Closing costs, realtor fees when selling, and opportunity cost of the down payment on one side; rent increases over time on the other. It models the steady-state monthly gap, which is the core signal.
What is the 5% rule?
A quick heuristic: annual ownership costs are roughly 3% of price for upkeep and tax plus mortgage interest, so if yearly rent is below about 5% of the home price, renting is often financially competitive.
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