Rent vs Buy

The decision to rent or buy a home is one of the most significant financial choices a person can make. The Rent vs. Buy Calculator is a comprehensive tool designed to help you analyze this decision from a purely financial perspective. It goes beyond a simple comparison of monthly rent versus a mortgage payment by incorporating many of the hidden costs and financial benefits associated with both options. The calculator is divided into two main sections: 'Buying Costs' and 'Renting Costs'. For the 'Buying' scenario, you will need to input detailed information such as the 'Home Price', your planned 'Down Payment', the 'Mortgage Rate' and 'Loan Term', as well as estimated annual costs for 'Property Tax' and 'Maintenance'. You can also input an expected 'Appreciation Rate' for the property value. For the 'Renting' scenario, you'll need to enter your current or expected 'Monthly Rent' and the estimated 'Annual Rent Increase'. Additionally, the tool requires some 'Common Assumptions' that affect both scenarios, including the 'Timeframe' in years you plan to stay in the location and the 'Investment Return' rate you could earn on your money if it were invested in the market (this is used to calculate the opportunity cost of your down payment). After filling out all the fields, click 'Calculate'. The tool provides a detailed comparison, showing the total unrecoverable costs for both buying (like interest and taxes) and renting. More importantly, it estimates your potential 'Net Worth' in both scenarios after the specified timeframe, giving you a clear, data-driven insight into which option might be financially advantageous for your situation.