Rent vs Buy Calculator
Compare the estimated long-term cost of renting a home versus buying a home.
Rent vs Buy Details
Rent vs Buy Results
How to Use the Rent vs Buy Calculator
Enter the home price, down payment, mortgage rate, loan term, property taxes, insurance, maintenance, HOA fees, expected home appreciation, monthly rent, rent increases, renter insurance, and comparison period. Realtolic will compare the estimated financial cost of renting versus buying.
Rent vs Buy Calculator Example
For example, suppose a home costs $400,000 with a 20% down payment and a 6.5% mortgage rate. If a comparable home rents for $2,200 per month, the calculator compares mortgage and ownership costs with rent payments over seven years while also considering estimated home appreciation, equity, selling costs, and investment returns.
How Does the Rent vs Buy Calculator Work?
The calculator estimates the cost of buying by considering mortgage payments, down payment, closing costs, property taxes, insurance, maintenance, HOA fees, future home value, remaining loan balance, and selling costs. It compares these costs with estimated rent, renter insurance, rent increases, and potential investment returns.
When Can Buying Be Better Than Renting?
Buying may become more attractive when you plan to stay in the property for a longer period, build equity through mortgage payments, and benefit from property appreciation. The result depends on interest rates, home prices, taxes, maintenance costs, and future market conditions.
When Can Renting Be Better Than Buying?
Renting may have a lower estimated cost when rent is relatively affordable, mortgage rates or home prices are high, or you expect to move within a shorter period. Renting can also require less upfront cash than buying.
Rent vs Buy Calculator FAQs
Does the calculator include home equity?
Yes. It estimates future home value, remaining loan balance, selling costs, and resulting home equity.
Does rent increase over time?
Yes. You can enter an annual rent increase percentage.
Is buying always better than renting?
No. The better financial option depends on your assumptions, location, timeline, financing, rent, home appreciation, and other costs.