Rent vs Buy Decision Engine

Get a clear, data-driven verdict on whether renting or buying makes more financial sense for your situation.

Home Purchase Details

$400,000
$100k$2M
$80,000 (20.0%)
$0$400,000
6.50%
2%10%

Rental & Investment Details

$2,500
$500$10,000
8.00%
0%15%
30 years
15 years30 years

Homeownership Costs

1.20% annually
0%5%

Varies by location. National average is ~1.2%. Check your local tax assessor's website.

1.0% annually
0%3%

General rule of thumb: 1% of home value per year. Adjust based on home age and condition.

BUY

Buying is the better financial decision

You'll save $15,065 over 10 years

Cost of Buying

Monthly Payment (P&I):$2,023
+ Property Tax (1.20%):$400
+ Maintenance (1.0%):$333
Total Monthly Cost:$2,756
Total Paid Over 10 Years:$410,714
Home Value in 10 Years (3% appreciation):$537,567
Equity After 10 Years:$266,283
Net Cost:$224,431

Cost of Renting + Investment

Monthly Rent (3% annual increase):$2,500
Initial Down Payment Invested:$80,000
Total Rent Paid Over 10 Years:$343,916
Investment Value After 10 Years:$191,197
Investment Gains:$111,197
Net Cost:$239,497

Important Considerations

  • This analysis assumes a 10-year time horizon and 3% annual home appreciation
  • Property taxes and maintenance costs can be adjusted above based on your local market
  • Rent increases at 3% annually (conservative estimate)
  • Down payment opportunity cost assumes investment in S&P 500 at your specified return
  • Does not account for tax deductions (mortgage interest, property taxes), closing costs, or transaction fees
  • Does not account for home insurance costs (typically 0.25-0.5% of home value annually)
  • Actual results may vary based on market conditions and personal circumstances

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