Rent vs Buy Detailed Calculator
Rent vs Buy Comparison
Compare the total cost of renting versus buying over time
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Formula
Total Rent = sum of monthly rent with annual increases. Net Buy Cost = Total owner costs + Down payment - Equity gain from appreciation.
Frequently Asked Questions
When does buying make more sense than renting?
Buying typically makes more sense when you plan to stay at least 5-7 years, home prices are appreciating, and mortgage payments are comparable to rent. The longer you stay, the more buying tends to favor you.
What hidden costs of homeownership are included?
This calculator includes property taxes (est. 1.2%), homeowner's insurance (est. 0.5%), and maintenance (est. 1% of home value annually) in addition to the mortgage payment.
Does this account for the tax benefits of buying?
This simplified comparison focuses on direct costs and appreciation. Actual tax benefits from mortgage interest deductions may further favor buying, but depend on your tax bracket and whether you itemize.
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