Ekuation

Finance

Is It Cheaper to Rent or Buy Where You Live?

A Detailed Financial Breakdown: Renting vs. Buying

Deciding whether to rent or buy is a major financial choice. Use our calculator to get a clear comparison of the costs involved over your chosen timeframe, helping you determine which path is more economical for your situation.

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 Is It Cheaper to Rent or Buy Where You Live?.

Read the complete guide

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

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