Should I rent or buy? Should I rent or buy? Should I rent or buy? This calculator compares the cost of renting versus the real cost of buying a home. Rent Information Monthly rent Monthly renters insurance How much will rent increase each year?Purchase Information Home price Down payment%$ Interest rate Loan TermMonthsYears Points Closing cost for buying%$Home Information Annual property taxes%$ Average monthly maintenance Monthly homeowners insurance How much will your home appreciate each year? Other monthly costs(Association dues, etc.)Personal Information State and Federal tax rate Investment rate of return(or bank account savings rate) How long will you stay in this property?MonthsYearsSale Information Real estate agent commission%$ Closing cost for selling%$ Show gain vs term graph ANSWERIf you buy, you could save $84,567.85 over the next 5 years. Calculator results detailPayment breakdownRentBuyMonthly payment$2,100.00$1,524.56Monthly taxes, maintenance, insurance, association dues and PMI$30.00$639.58Total monthly payment$2,130.00 to$2,393.57$2,164.14Total payments over 5 years$135,590.22$129,848.40Tax savings over 5 yearsRentBuyTotal payments$135,590.22$129,848.40Total payments less tax savings$135,590.22$106,418.02Total tax savings$0.00$23,430.38Home appreciation vs comparison investment over 5 yearsRentBuySale price of home$425,828.51Remaining loan balance($257,573.14)Cost for purchase and sale of home($31,849.71)Down payment, points, and closing costs invested$74,300.00Investment return$8,946.69Investment tax owed($2,236.67)Gain on home or comparison investment$81,010.02$136,405.66Total cost analysis over 5 yearsRentBuyTotal payments$135,590.22$129,848.40Total tax savings($23,430.38)Gain on home or comparison investment($81,010.02)($136,405.66)Total$54,580.20($29,987.64) Calculator tipsHome purchase is potentially the greatest investment you will make in your lifetime. This calculator considers only the financial benefits of renting vs buying. Home ownership has other benefits as well. Please consider all the factors when making your final decision.Your tax rate is used to calculate the monthly advantage of your interest deduction. If you wish not to include the interest deduction advantage, you may set your tax rate to 0. Please keep in mind that your tax deduction may be limited beyond the scope of this calculator. Talk to your tax advisor before using these results in your specific situation.Your investment rate of return is used to compare the difference between investing in a house and investing elsewhere (e.g., like your savings account).Tax on your yield in equity is not taken into account. Talk to your tax advisor if you think you may be subject to this tax.This calculator does not consider the potential benefits of accepting the standard rent credit or the standard deduction when comparing the tax savings of renting versus buying a home. The decision to itemize or accept the standard deduction is beyond the scope of this calculator."Cost for purchase and sale of home" includes agent commission for selling as well as closing costs, points, and fees for buying.This calculator assumes that the difference between the monthly rent payment and the monthly mortgage payment is not invested. Calculator disclaimer The information provided by these calculators is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. Presented by TimeValue Software ©2022
