Ekuation

Finance

Calculate the True Cost of Owning a Home vs. Renting

Understanding All Home Ownership Expenses

Owning a home involves more than just the mortgage payment. This calculator helps you compare the total costs of buying versus renting over time, including often overlooked expenses like property taxes, insurance, and maintenance.

Renting Information

Your current or estimated monthly rent payment.

$

Estimated average annual rent increase.

%

Buying Information

Purchase price of the home.

$

Percentage of home price paid upfront.

%
Years

Annual interest rate for the loan.

%

Annual property tax as % of home value.

%

Estimated yearly homeowners insurance cost.

$

Annual maintenance/repairs as % of home value.

%

Monthly Homeowners Association fees, if any.

$

Market & Financial Assumptions

Estimated average annual increase in home value.

%

Estimated return if down payment/costs were invested.

%

Your combined federal/state income tax rate.

%

Transaction Costs

Upfront buying costs as % of home price.

%

Costs to sell home as % of future value.

%

Comparison Horizon

Number of years for the comparison period.

Important Considerations:

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Try an Example

Pick a scenario to see how the calculator works, then adjust the values

City Apartment vs Starter Home

Compare renting a $1,800/mo city apartment against buying a $350K starter home with 20% down over 7 years

Key values: $1,800/mo rent · $350K home · 6.5% rate · 7-year horizon

Suburban Family Home

Compare renting at $2,500/mo against a $500K suburban home with 10% down over 10 years

Key values: $2,500/mo rent · $500K home · 7% rate · 10-year horizon

Documentation

This calculator is also known as Calculate the True Cost of Owning a Home vs. Renting.

Read the complete guide

Specialized Calculators

Choose from 1 specialized versions of this calculator, each optimized for specific use cases and calculation methods.

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