Rent vs Buy Calculator
Compare the long-term financial costs of renting versus buying a home
ποΈ
Rent vs Buy: Major Financial Decision
The decision to rent or buy a home is one of the most significant financial choices. While homeownership is part of the American Dream, it's not right for everyone.
This calculator helps you compare the true costs of renting versus buying.
True Cost of Homeownership
Property Tax
1-2% of home value/year
Insurance
$1,000-3,000+/year
Maintenance
~1% of home value/year
HOA Fees
$100-500+/month
Closing Costs
2-5% of purchase price
Selling Costs
~6% when selling
The 5-Year Rule
Financial experts recommend staying 5+ years for buying to make sense financially.
FAQ
Q: What's a good price-to-rent ratio?βΌ
A: Under 15: buy; 15-20: depends; Over 20: rent
Q: What about investment returns?βΌ
A: Home appreciation 3-5% + principal paydown = total return