US Rent vs. Buy Calculator
Should you rent or buy a home in the USA? Model total costs, home appreciation, and break-even timelines.
đĄ US Rent vs. Buy Calculator
Model the true cost of buying vs. renting over your planned time horizon.
Home Purchase
Renting & Assumptions
What is the US Rent vs. Buy Calculator?
Compare the true financial cost of renting vs. buying a home over your planned time horizon. Accounts for mortgage payments, property taxes, maintenance, home appreciation, and selling costs.
How Does the US Rent vs. Buy Calculator Work?
Enter home price, down payment, mortgage rate, current rent, expected appreciation, and how long you plan to stay. The calculator simulates total cost of ownership vs. total rent paid over that period.
Formula & Calculation Method
Monthly mortgage is calculated using standard amortization formula. Home value at sale is projected using compound appreciation, minus 6% agent fees. Net buy cost = total mortgage paid + maintenance - net sale proceeds. Rent total compounds annually at your specified rent increase rate.
Example Calculation
For a $400,000 home with 20% down ($80,000) at 6.5% interest, buying over 7 years is compared against renting at $2,000/month with 3% annual rent increases.
Frequently Asked Questions
Monthly mortgage is calculated using standard amortization formula. Home value at sale is projected using compound appreciation, minus 6% agent fees. Net buy cost = total mortgage paid + maintenance - net sale proceeds. Rent total compounds annually at your specified rent increase rate.
Disclaimer: This tool is provided for informational and calculation purposes. Output values are estimates based on standard user inputs.