Rent vs Buy Calculator

Introduction

Choosing between renting and buying is a major financial decision with implications for monthly cash flow, flexibility, and long-term wealth. This Rent vs Buy tool frames the trade-off by comparing typical ownership costs—mortgage payment, property taxes, and maintenance—to current rent. It provides a clear, scenario-driven view so you can decide based on numbers rather than assumptions.

Instead of juggling spreadsheets, you enter a few inputs and see a concise comparison that highlights monthly impact. It is valuable for first-time buyers exploring options and for renters evaluating whether the market supports a transition to ownership.

Why This Tool Is Useful

Decisions improve with transparency. Ownership includes additional costs beyond principal and interest, and rent sometimes reflects amenities or location premiums. Comparing them side by side reduces bias and helps set realistic expectations. The tool encourages experimentation: tweak home price, rate, or maintenance to understand sensitivity and find a comfortable range.

Because it runs in your browser, iteration is fast and private. You can model multiple homes or rent scenarios in minutes and share results easily with family or advisors.

Key Features

Calculates a simplified monthly mortgage payment alongside typical ownership additions like property taxes and maintenance. Presents these values next to your rent for a quick, digestible comparison. The interface stays readable so the focus remains on making decisions.

How to Use

1. Enter home price, interest rate, and term.
2. Add your monthly rent, estimated property tax percentage, and maintenance estimate.
3. Click Calculate to view the monthly ownership cost vs rent.
4. Adjust inputs to test affordability and choose the option that aligns with your budget and goals.