Free Buy vs Rent Advanced Calculator
Compare the total cost of buying a home versus renting over a specified time horizon, accounting for appreciation, tax benefits, and investment returns on savings.
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Appreciation Gain
$91,950
Total Cost of Buying$325,500
Home Value After Period$491,950
Total Rent Paid$202,289
Monthly Mortgage (P&I)$2,022.62
Down Payment Required$80,000
Appreciation Gain vs Comparable Monthly Rent
Buy vs Rent Comparison
Deciding whether to buy or rent depends on how long you plan to stay, local price-to-rent ratios, your opportunity cost of capital, and personal lifestyle preferences.
Buying Costs
Renting Costs
General Guidelines
Example Calculation
A $400,000 home with 20% down at 6.5% vs. renting at $2,200/month with 3% annual rent increases, over a 7-year horizon with 3% appreciation.
- 01Down payment: $400,000 x 20% = $80,000
- 02Loan amount: $320,000
- 03Monthly mortgage (30-yr): approximately $2,023
- 04Total mortgage over 7 years: $2,023 x 84 = $169,932
- 05Total taxes + insurance + maintenance: ($5,000 + $1,800 + $4,000) x 7 = $75,600
- 06Total buying cost: $80,000 + $169,932 + $75,600 = $325,532
- 07Home value after 7 years: $400,000 x 1.03^7 = $491,918
- 08Total rent paid: approximately $197,045