Rent or buy?

Renting isn't throwing money away, and buying isn't always cheaper. This compares the real cost of each over the time you plan to stay.

Renting

Monthly rent

Rent increase (%/yr)

Buying

Home price

Down payment (%)

Interest rate (%)

Loan term (years)

Tax, insurance & upkeep (%/yr)

Of home price, per year.

Purchase closing costs ($)

Enter your estimate, or 0 if none. Paid upfront, separate from down payment.

Home appreciation (%/yr)

Years you'll stay (1 month to 50 years)

Selling costs (% of price)

Commission + transfer tax at sale.

Includes rent (increases on each yearly anniversary), down payment, purchase closing costs, fixed-rate mortgage payments, flat annual tax/insurance/upkeep based on the purchase price, and sale proceeds after selling costs and loan payoff. Appreciation compounds over the selected period. Fractional final months prorate payments, interest, rent, and upkeep. Mortgage payments stop at payoff.

Excludes PMI or FHA MIP, HOA dues, utilities, renter insurance, moving costs, income-tax effects, investment returns on cash and payment differences, and inflation in ownership costs. The editable defaults are scenarios, not forecasts. A negative net buying cost represents modeled gains at sale.

Enter your rent and a home price to compare.

How this is figured

Renting: total rent paid over the period, changing on each yearly anniversary, with partial months prorated.
Buying: down payment plus purchase closing costs, all payments and ownership costs, minus the equity and appreciation you recover when you sell (after selling costs).
It does not include the investment return you might earn on the down payment if you rented, income-tax effects, or PMI.

This is an educational estimate. The result is sensitive to your assumptions, especially appreciation and how long you stay. Kevin can talk through your specific situation.