Rrose@emortgagecapital.com

Rent vs Buy Calculator

Compare the estimated long-term costs of renting a home versus buying one to see which option may better fit your financial goals. Adjust the comparison period and enter details such as home price, down payment, mortgage rate, rent, taxes, insurance, and expected appreciation. Review the estimated savings, break-even point, and cost charts to understand how each option compares over time. Use the results as a planning guide when deciding whether renting or buying may be the better choice for you.

Should you rent or buy a home? Use this calculator to compare the costs of renting vs. buying over time and make an informed decision.

Buying is Better

Total savings over 10 years

Comparison Period

Years to Compare

years

1 year 30 years

Buying Details

Home Price

$100,000 $2,000,000

Down Payment

0% 50%

Mortgage Interest Rate

1% 12%

Mortgage Term

years

10 years 30 years

Property Tax Rate

0% 4%

Home Insurance (Annual)

$500 $5,000

Maintenance Rate

0% 3%

Home Appreciation

-5% 10%

Renting Details

Monthly Rent

$500 $10,000

Annual Rent Increase

0% 10%

Renter's Insurance (Annual)

$0 $1,000

Investment Return

0% 15%

Total Cost Over 10 Years

Renting

Buying

Buying saves you

over 10 years

Cumulative Cost Over Time

Renting

Buying

Renting Costs

Total Cost $0

Buying Costs

Total Cost $0

Monthly Mortgage Payment

Principal & Interest only

Down Payment Required

20% of home price

Monthly Rent

Starting rent

Why Your Holding Period Matters

How long you plan to stay in a home can significantly affect a rent-versus-buy comparison. Buying may involve upfront costs, ongoing ownership expenses, and eventual selling costs, while renting has a different cost structure. A shorter holding period may therefore produce a different result than staying in the home for many years. Use the Years to Compare setting above to test different holding periods and see how the estimated break-even point and total costs change.

How the Break-Even Point Works

The break-even point estimates when the cumulative financial cost of buying becomes comparable to or lower than renting based on the assumptions entered. Changes in home prices, rent, interest rates, taxes, insurance, maintenance, and other costs can change the estimated break-even period.

Important Calculator Assumptions

This calculator is an educational planning tool based on the information and assumptions you enter. It does not predict future home values, rent increases, mortgage rates, property taxes, insurance costs, maintenance expenses, or investment returns. Actual costs and results can vary based on the property, location, loan program, market conditions, and your individual circumstances.

Learn More About Buying a Home

California: Renting vs. Buying a Home in California: Cost Guide
Tennessee: Mortgage Preapproval in Tennessee: Before You Tour Homes

To estimate the monthly principal-and-interest payment for a specific home price, use our Mortgage Payment Calculator.

To plan for upfront purchase expenses, use our Closing Cost Calculator.

When you are ready to explore buying, review our Purchase Qualification guide.

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Rodney Rose

Loan Officer / Branch Manager

NMLS#: 1396861 DRE#: 00853403

C: (916) 232 3040

E: rrose@emortgagecapital.com

W: MortgageMarketUpdate.com

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