Rent vs. Buy Calculator
Compare the long-term costs of renting versus buying a home. See which option makes more financial sense for your situation.
Home Purchase Details
Rent Details
Comparison Results
Buying is Better!
After 5 years, buying saves you money.
Total Cost After 5 Years
Total Rent Paid$159,274
Total Owning Costs$257,357
Equity Built+$164,155
Net Cost of Owning$93,203
Difference$66,072
Buying saves you this amount
Monthly Payment Breakdown
Mortgage (P&I)$2,023
Property Tax$500
Insurance$100
Maintenance (1%)$333
Total Monthly$2,956
vs. Current Rent$2,500
Wealth Building Comparison
Home Value After 5 Years$463,710
Equity Built$164,155
💡 Buying builds equity: Your monthly payments build wealth over time. Renting provides no equity or tax benefits.
Beyond the Numbers
Reasons to Buy
- • Build equity and wealth over time
- • Fixed monthly payment (with fixed-rate mortgage)
- • Tax deductions (mortgage interest, property taxes)
- • Freedom to customize and renovate
- • Stability and long-term cost control
- • Asset that appreciates over time
Reasons to Rent
- • Flexibility to move easily
- • No maintenance or repair costs
- • No property tax or insurance bills
- • Lower upfront costs (no down payment)
- • Access to amenities (pool, gym, etc.)
- • Predictable monthly expenses
Important Disclaimers:
- Simplified Assumptions: This calculator uses estimates for taxes, insurance, and maintenance. Actual costs vary by location and property.
- Not Financial Advice: This comparison is for informational purposes only. Consider your full financial situation, lifestyle, and goals.
- Tax Benefits Not Included: Homeownership may provide tax deductions not reflected in this calculator.
- Market Volatility: Home values and rental costs can fluctuate. Past performance doesn't guarantee future results.
Personalized Analysis: Contact Jimmy Joseph MBA at (908) 698-0150 to discuss your specific situation and get expert guidance.