Calculator Inputs
Fill the fields below and press Calculate. The result appears above this form.
Example Data Table
| Input | Example Value |
|---|---|
| Home Price | $350,000 |
| Down Payment | 20% |
| Mortgage Interest Rate | 6.50% |
| Loan Term | 30 years |
| Years to Stay | 10 years |
| Property Tax | 1.20% |
| Home Insurance | $1,500 annually |
| Maintenance Rate | 1.00% |
| HOA | $0 monthly |
| Closing Cost | 3.00% |
| Selling Cost | 6.00% |
| Appreciation | 3.00% |
| Monthly Rent | $1,800 |
| Rent Increase | 4.00% |
| Renter Insurance | $250 annually |
| Investment Return | 7.00% |
| Inflation | 2.50% |
Formula Used
Core Ownership Formulas
Down Payment = Home Price × Down Payment %
Loan Principal = Home Price − Down Payment
Closing Cost = Home Price × Closing Cost %
Monthly Mortgage = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Property Tax = Current Home Value × Property Tax %
Maintenance = Current Home Value × Maintenance %
Future Home Value = Previous Home Value × (1 + Appreciation %)
Net Sale Proceeds = Future Home Value × (1 − Selling Cost %) − Remaining Loan Balance
Core Renting Formulas
Annual Rent = Monthly Rent × 12 × (1 + Rent Increase %)year−1
Renter Annual Cost = Annual Rent + Renter Insurance
Investment Balance = Previous Balance × (1 + Investment Return %) + (Owner Annual Cost − Renter Annual Cost)
Owner Net Cost = Total Owner Cash Out − Net Sale Proceeds
Renter Net Cost = Total Renter Cash Out − Investment Balance
Decision Rule = The lower net cost is the better financial path.
This model compares cash outflows, remaining equity, sale proceeds, and renter investment growth over the selected time horizon.
How to Use This Calculator
- Enter the property price and your expected down payment percentage.
- Fill in mortgage terms, including interest rate and loan length.
- Add yearly ownership costs such as tax, insurance, maintenance, and HOA.
- Enter expected selling cost and annual home appreciation.
- Enter current rent, expected rent growth, and renter insurance.
- Set the investment return for savings not used on buying.
- Choose how many years you plan to stay in the property.
- Press Calculate to see the result above the form.
- Review the summary metrics, yearly table, and Plotly graph.
- Use the CSV or PDF buttons to export the calculated results.
Frequently Asked Questions
1. What does this calculator compare?
It compares the long term financial impact of renting versus buying. The model includes mortgage costs, home expenses, rent growth, property appreciation, and investment returns on money not spent buying.
2. What is net cost in this model?
Net cost means total cash paid minus the wealth you still hold at the end. For buyers, that wealth is sale proceeds. For renters, it is the investment balance.
3. Why can renting sometimes win?
Renting can win when rent is relatively low, expected investment returns are strong, ownership costs are high, or the planned stay is too short to recover closing and selling costs.
4. Why can buying sometimes win?
Buying can win when home appreciation is healthy, rent growth is high, you stay longer, and mortgage plus carrying costs remain reasonable compared with rent.
5. Does this include tax deductions?
No. This version avoids location specific tax rules. If you want, you can extend the file later with mortgage interest deductions, capital gains assumptions, or local tax treatment.
6. What does break even year mean?
It is the first year where the buyer’s net cost becomes equal to or lower than the renter’s net cost. If it never happens, the calculator shows not reached.
7. Should I match inflation and rent growth?
Not always. Rent growth may move differently from general inflation. Use local rental trends for rent growth and a broader assumption for insurance, HOA, and other recurring cost inflation.
8. Is this calculator enough for a final decision?
It is a strong financial comparison tool, but not a full life decision model. Also consider job stability, mobility, maintenance effort, neighborhood quality, and personal preferences.