To Rent or To Buy, That Is The Question

Explore the financial implications of renting versus buying with our insightful Rent vs. Buy Calculator. This calculator helps potential homeowners assess the total costs of renting and owning a property, aiding in making informed decisions about housing.

I recently heard on a podcast that for all we talk about what a waste rent is, it turns out rent has only a 1% edge on buying longterm. Thinking that can’t be right, I set out to make my own calculator to see if it’s true. Thus our Rent vs. Buy Calculator (below) is a tool designed to compare the total cost of renting a property, including the cost of rent and renters insurance, against the total cost of owning a home over a given period. The latter involves several elements such as mortgage payments, property taxes, home insurance, and maintenance costs. By providing a holistic view of the two scenarios, this tool empowers individuals to evaluate the financial feasibility and implications of both renting and owning a home, thereby assisting in crucial decision-making processes.

A note about this free tool, so it has some limitations to keep in mind. While this Rent vs. Buy Calculator provides a valuable comparison between the costs of renting and owning, it’s important to understand its limitations. This calculator does not take into account some significant factors, such as potential home price appreciation, fluctuations in rental rates over time, or the potential investment returns from investing a down payment instead of using it to buy a home. Additionally, there are personal and lifestyle factors—such as mobility needs, desire for stability, and personal preference—that this calculator cannot quantify. Thus, while this tool provides a good starting point, it’s always recommended to consult with a real estate professional or financial advisor for a comprehensive understanding of the rent vs. buy decision.

How To Use Our Rent vs. Buy Calculator

1

Input Your Rent Information

Enter items associated with your cost of rent including rent price and renters insurance. Notice those are the only costs associated with renting.

2

Input Home Costs

Next you're going to track down and enter costs associated with your home. Trust me they are immense and, as noted above, we didn't even have space to include all of the possible costs associated with owning a home.

3

Calculate, evaluate, make the call

After hitting calculate you will be given the information to make a rough estimate about what is best for you. Don't forget, studies show that the most rational option may not be the one that makes you the happiest.

calculate

To rent or to buy?