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Rent vs Buy
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Use this calculator to see the
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financial difference between
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renting or buying a home.
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Renting Costs
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Monthly rent
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$
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Monthly insurance
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$
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Rent increases
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%
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Buying Costs
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Purchase price
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$
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Down payment
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%
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$
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Mortgage interest rate
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%
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Length of mortgage
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Closing costs
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%
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$
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5
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Home
Ownership Costs
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Annually
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Property taxes
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%
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$
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Home maintenance
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%
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$
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Home insurance
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%
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$
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Utilities (monthly)
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$
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$
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Condo fees (monthly)
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$
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$
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What Does the Future Hold?
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How long do you plan to stay?
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yrs
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Home appreciates at
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%
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Investment rate of return
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%
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Inflation rate
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%
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Selling costs
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%
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Assumptions
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The financial gain from buying represents the
projected value of your
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home when you sell minus any outstanding mortgage
balance and
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selling costs. The financial gain from renting
represents the growth of
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the down payment, closing costs and mortgage
insurance since these
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amounts could be invested instead if you choose to
rent. If your rent
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payment (rent plus insurance) is less than the
total buy payment
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(mortgage payment, property taxes, maintenance,
utilities, insurance
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and condo fees), the annual savings from paying
less in rent are
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added to the investment at the end of each year. If
the rent payment is
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greater than the total buy payment, the difference
is subtracted from the
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investment. The inflation rate is used to calculate
annual increases in
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property taxes, home maintenance, insurance and
utilities. If your down
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payment is less than 20%, the calculator includes
the appropriate
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amount of mortgage insurance. If you enter a down
payment less than
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the required minimum, the calculator adjusts this
amount to the minimum.
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Disclaimer
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This calculator is for illustrative purposes only.
You should not rely on the
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results as indication of your financial needs and
we recommend that you
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seek out your own investment, legal, tax or
professional advice.
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