Home » Mortgage Calculators » Rent vs. Buy Calculator
Rent vs. Buy Calculator
Rent vs. Buy Calculator
Mortgage Information
$
$
%
$
%
Optional Information
$
$
$
Buying Assumptions
%
%
%
%
Renting Assumptions
$
%
%
YEAR
9
BUY
$233,172
RENT
$237,155
BUY GAIN
$3,982

Out of Pocket Cost: After 9 year(s), your total out of pocket cost of homeownership for a $580,000 home would be $485,055. Your total cost to rent would be $237,155. Renting will leave you with $247,900 in your pocket (which includes the money you didn't spend on a down payment).

Financial Gain: After 9 year(s), if you buy, your home will have $297,288 in equity (available to you when you sell).

Summary: Looking at the total costs and equity earned, it's better for you to buy than rent if you plan to live in your home more than 9 Year(s).

Show results after year #9:
Results Summary
Buying becomes profitable in year 5.
Buying
Renting
$242,764
$118,693
Cash Spent
-$378,754
--
Home value
$229,965
--
Balance on Loan
$22,725
--
Closing costs on sale
$116,700
$118,693
Rent:$237,155
Buy:$233,172
RENTING vs BUYING NET COSTS
Created with Highcharts 10.1.0Cost of RentingCost of BuyingCost of RentingCost of Buying246810121416182022242628300250K500K750K1.0M1.3MBreak Even
Loan details Buying (spent) House value Renting Rent vs. Buy
Year Interest Loan Balance Payments PMI/FHA fees Taxes Insurance Expenses Tax Savings Spent Total Spent House Value Home Value (net) Total Rent Total Rent Expenses Buy Net Rent Net Rent vs Buy
1 37,261 516,869 100,392 0 6,000 1,500 6,400 (10,815) 103,477 103,477 597,400 561,556 24,000 312 58,790 24,312 34,478
2 36,881 511,357 42,392 0 6,180 1,545 6,574 (10,765) 45,926 149,403 615,322 578,403 48,480 630 82,358 49,110 33,247
3 36,472 505,437 42,392 0 6,365 1,591 6,753 (10,709) 46,393 195,796 633,782 595,755 73,450 955 105,478 74,404 31,074
4 36,034 499,079 42,392 0 6,556 1,639 6,938 (10,647) 46,878 242,674 652,795 613,627 98,919 1,286 128,125 100,205 27,921
5 35,562 492,249 42,392 0 6,753 1,688 7,128 (10,579) 47,383 290,056 672,379 632,036 124,897 1,624 150,269 126,521 23,748
6 35,056 484,913 42,392 0 6,956 1,739 7,324 (10,503) 47,908 337,964 692,550 650,997 151,395 1,968 171,880 153,363 18,517
7 34,513 477,034 42,392 0 7,164 1,791 7,526 (10,419) 48,454 386,417 713,327 670,527 178,423 2,319 192,924 180,742 12,182
8 33,929 468,571 42,392 0 7,379 1,845 7,733 (10,327) 49,022 435,440 734,727 690,643 205,991 2,678 213,367 208,669 4,698
9 33,302 459,480 42,392 0 7,601 1,900 7,947 (10,226) 49,615 485,055 756,768 711,362 234,111 3,043 233,172 237,155 3,982
10 32,628 449,716 42,392 0 7,829 1,957 8,168 (10,114) 50,231 535,286 779,472 732,703 262,793 3,416 252,299 266,210 13,911
11 31,904 439,228 42,392 0 8,063 2,016 8,395 (9,992) 50,874 586,160 802,856 754,684 292,049 3,797 270,704 295,846 25,142
12 31,127 427,963 42,392 0 8,305 2,076 8,629 (9,858) 51,544 637,705 826,941 777,325 321,890 4,185 288,343 326,075 37,732
13 30,292 415,863 42,392 0 8,555 2,139 8,869 (9,712) 52,243 689,948 851,750 800,645 352,328 4,580 305,166 356,908 51,742
14 29,396 402,867 42,392 0 8,811 2,203 9,117 (9,552) 52,972 742,919 877,302 824,664 383,375 4,984 321,123 388,358 67,236
15 28,433 388,908 42,392 0 9,076 2,269 9,373 (9,377) 53,733 796,652 903,621 849,404 415,042 5,396 336,156 420,438 84,282
16 27,398 373,914 42,392 0 9,348 2,337 9,636 (9,187) 54,527 851,179 930,730 874,886 447,343 5,815 350,207 453,158 102,952
17 26,287 357,809 42,392 0 9,628 2,407 9,907 (8,979) 55,356 906,534 958,652 901,133 480,290 6,244 363,211 486,533 123,323
18 25,094 340,511 42,392 0 9,917 2,479 10,187 (8,753) 56,222 962,757 987,411 928,167 513,895 6,681 375,101 520,576 145,475
19 23,812 321,930 42,392 0 10,215 2,554 10,474 (8,507) 57,128 1,019,885 1,017,034 956,012 548,173 7,126 385,803 555,300 169,496
20 22,435 301,973 42,392 0 10,521 2,630 10,770 (8,239) 58,075 1,077,959 1,047,545 984,692 583,137 7,581 395,241 590,718 195,477
21 20,956 280,537 42,392 0 10,837 2,709 11,075 (7,948) 59,065 1,137,025 1,078,971 1,014,233 618,800 8,044 403,329 626,844 223,515
22 19,368 257,513 42,392 0 11,162 2,790 11,390 (7,632) 60,102 1,197,126 1,111,340 1,044,660 655,176 8,517 409,979 663,693 253,713
23 17,661 232,782 42,392 0 11,497 2,874 11,713 (7,290) 61,187 1,258,313 1,144,680 1,075,999 692,279 9,000 415,096 701,279 286,183
24 15,829 206,219 42,392 0 11,842 2,960 12,047 (6,918) 62,323 1,320,636 1,179,021 1,108,279 730,125 9,492 418,576 739,616 321,041
25 13,860 177,687 42,392 0 12,197 3,049 12,390 (6,514) 63,514 1,384,151 1,214,391 1,141,528 768,727 9,993 420,310 778,721 358,411
26 11,746 147,041 42,392 0 12,563 3,141 12,744 (6,077) 64,762 1,448,913 1,250,823 1,175,774 808,102 10,505 420,180 818,607 398,427
27 9,475 114,124 42,392 0 12,940 3,235 13,108 (5,604) 66,071 1,514,984 1,288,348 1,211,047 848,264 11,027 418,061 859,291 441,231
28 7,036 78,767 42,392 0 13,328 3,332 13,483 (5,091) 67,444 1,582,428 1,326,998 1,247,378 889,229 11,560 413,817 900,789 486,972
29 4,416 40,791 42,392 0 13,728 3,432 13,870 (4,536) 68,886 1,651,314 1,366,808 1,284,800 931,014 12,103 407,305 943,117 535,812
30 1,602 0 42,392 0 14,139 3,535 14,268 (3,935) 70,399 1,721,713 1,407,812 1,323,343 973,634 12,657 398,370 986,291 587,921