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🏠 Rent vs Buy Calculator

Compare the true long-term cost of renting versus buying a home. Find your breakeven year and make a confident decision.

How Costs Are Calculated

Buying costs include: Mortgage payment + Property tax (1.1%/yr) + Insurance (0.5%/yr) + Maintenance (1%/yr), minus home equity built.

Renting costs include: Monthly rent with 3% annual increases.

Breakeven year: The year when cumulative renting cost exceeds cumulative buying cost.

How to Use This Calculator

  1. 1
    Enter Home Details
    Input the home price, your down payment percentage, mortgage rate, and loan term.
  2. 2
    Enter Rental Details
    Enter your current monthly rent and expected annual home appreciation.
  3. 3
    Set Comparison Period
    Choose how many years you want to compare (e.g., 5, 10, or 20 years).
  4. 4
    Review the Table
    See the year-by-year cost comparison and the exact year buying becomes cheaper than renting.

Real-World Example

Home price: $400,000, 20% down, 6.5% rate, 30-yr term. Rent: $2,000/mo. Home appreciates 3%/yr.

Monthly mortgage (P&I): ~$2,023
Annual buy costs: ~$36,280 (mortgage + taxes + insurance + maintenance)
Annual rent year 1: $24,000 → grows to $32,000 by year 10
Typical breakeven: ~Year 7-9

Frequently Asked Questions

Mortgage payment (principal + interest), property tax (1.1% of home value/yr), homeowner's insurance (0.5%/yr), and maintenance (1%/yr). It also accounts for home equity build-up.

Historically, rents increase with inflation, averaging around 3% per year. This makes the comparison more realistic over longer periods.

The breakeven year is when your cumulative cost of buying drops below your cumulative cost of renting. Before that year, renting is cheaper; after it, buying is cheaper.

This calculator focuses on ongoing costs. You should add 2-5% of home price for closing costs when making your final decision.

Not necessarily. If you plan to move within 5 years, renting is often cheaper when you account for transaction costs. The calculator shows you the crossover point.

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