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Rent vs Buy Calculator

Compare the true cost of renting versus buying a home over time

Renting is better

Over 7 years, you could save $218,901

Net Cost (Buying)

$160,899

Net Cost (Renting)

-$58,002

Buying Details
20%

$80,000

Renting Details
3%
Time Horizon & Investments
7 years
7%

Expected return if down payment was invested instead

Monthly Cost Breakdown (Buying)
Total: $2,881/month
Net Worth Over Time
Comparing equity building vs investment growth

Final Home Value

$491,950

Home Equity Built

$173,101

Total Rent Paid

$185,299

Renter Investment Value

$243,301

Things to Consider

Reasons to Buy

  • - Build equity over time instead of paying a landlord
  • - Lock in monthly payments (fixed-rate mortgage)
  • - Tax deductions on mortgage interest and property taxes
  • - Freedom to renovate and customize your space
  • - Potential appreciation in home value

Reasons to Rent

  • - Flexibility to move for job opportunities
  • - No maintenance or repair responsibilities
  • - Lower upfront costs (no down payment needed)
  • - Invest the difference in stocks/bonds
  • - No risk of home value depreciation