Rent vs Buy Calculator

Rent vs Buy Calculator | CalcHub

Rent vs Buy Calculator

Compare the financial implications of renting vs buying a home. Calculate long-term costs, equity buildup, and investment opportunities.

Basic Home Information

Enter the basic details about the property and your finances

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$50K $5M
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%
0% 100%
years
5 years 40 years
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1% 15%
$
$100 $10,000
years
1 year 30 years

Advanced Financial Details

Fine-tune the calculation with additional costs and assumptions

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0% 5%
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0% 3%
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0% 5%
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$0 $1,000
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0% 10%
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0% 10%
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0% 10%
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0% 15%
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0% 10%

Scenario Comparison

Compare different financial scenarios

% Appreciation
% Interest
% Rent Increase
% Investment Return

Rent vs Buy Analysis

🏠
Buying is better in the long run
You would save $45,000 by buying instead of renting over 10 years
Total Cost of Renting
$240,000
Over 10 years
Total Cost of Buying
$195,000
Over 10 years
Renting Costs Amount
Rent Payments
$240,000
Investment Returns
+$35,000
Total Cost of Renting $205,000
Buying Costs Amount
Down Payment
$80,000
Mortgage Payments
$182,000
Property Tax
$48,000
Home Insurance
$20,000
Maintenance
$40,000
HOA Fees
$0
Closing Costs
$12,000
Home Equity
-$150,000
Home Appreciation
-$137,000
Total Cost of Buying $95,000

Equity Build-Up

$150,000
Estimated home equity after 10 years

Financial Tips

  • Consider buying if you plan to stay in the home for at least 5-7 years
  • Renting may be better if you value flexibility and don't want maintenance responsibilities
  • Factor in all costs of homeownership including property tax, insurance, and maintenance
  • Consider the opportunity cost of your down payment investment

How It Works

This calculator compares the total costs of renting versus buying a home over a specified time period.

It factors in mortgage payments, property taxes, insurance, maintenance, home appreciation, and investment opportunities.

Rent vs Buy Comparison

Factor Renting Buying
Monthly Cost Fixed rent Mortgage + expenses
Maintenance Landlord responsible Homeowner responsible
Equity No equity buildup Build equity over time
Flexibility High - easy to move Low - selling takes time
Tax Benefits Limited Mortgage interest deduction

Key Considerations

Time Horizon: Buying typically becomes more favorable the longer you stay in a home.

Market Conditions: Home appreciation rates and interest rates significantly impact the calculation.

Location: In some markets, renting may be significantly cheaper than buying.

Personal Factors: Consider your lifestyle, job stability, and future plans.

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