Rent vs Buy Calculator
Rent vs Buy Comparison
Formula
Total Rent = Σ(Monthly Rent × 12 × (1 + rent increase)^year); Net Buying Cost = Down Payment + Mortgage Payments + Ownership Costs - Equity Built
Frequently Asked Questions
Is it always better to buy?
Not necessarily. Buying makes more financial sense when you plan to stay for many years, home values appreciate, and your mortgage rate is reasonable. Renting can be better for shorter time horizons or in expensive markets.
What costs are included in buying?
This calculator includes down payment, mortgage payments, and estimated ownership costs (property tax, insurance, maintenance at ~2.5% of home value per year), offset by home appreciation and equity built.
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