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Rent vs Buy Calculator

Compare renting vs buying a home over time

Home Purchase Details

$
$

20% down

%
years

Rental & Assumptions

$
%

Typical: 2-4%

%

Typical: 3-5%

years
%
$
%

Annual % of home value

Net Buying Cost

$169,313

After equity

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Total Renting Cost

$275,133

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Difference

$105,820

Save by buying

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Break-Even Year

1 years

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Recommendation: Buying is Better

Total Buying Cost (Net)

$169,313

Total Renting Cost

$275,133

Home Equity Built

$266,283

Cost Comparison Over Time

Understanding Rent vs Buy

Benefits of Buying

  • Build equity over time
  • Fixed monthly payment (principal & interest)
  • Tax deductions on mortgage interest
  • Home appreciation potential
  • Freedom to customize your home

Benefits of Renting

  • Lower upfront costs
  • Flexibility to move easily
  • No maintenance or repair costs
  • Amenities often included
  • No property tax or insurance burden

Key Factor: Break-even is typically 5-7 years. If staying longer, buying often makes sense. If shorter, renting may be better.