Rent vs Buy Calculator
Buying is Better: Save $47,832
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| Buying | Renting | |
| 7-Year Cost Analysis | Amount | Amount |
| Monthly Payment | $2,021 | $2,500 |
| Property Tax | $400 | $0 |
| Insurance | $100 | $17 |
| PMI | $200 | $0 |
| Maintenance | $333 | $0 |
| Total Monthly Cost | $3,054 | $2,517 |
| 7-Year Total Costs | Buying | Renting |
| Total Payments | $255,528 | $231,420 |
| Down Payment | $80,000 | $0 |
| Closing Costs | $8,000 | $0 |
| Opportunity Cost | $15,432 | $0 |
| Home Equity Built | -$45,892 | $0 |
| Home Appreciation | -$110,900 | $0 |
| Net 7-Year Cost | $202,168 | $231,420 |
| Difference (Savings) | $29,252 saved by buying | |
| Break-Even Analysis | Time | Details |
| Break-Even Point | 4.2 years | Buying becomes cheaper |
| Monthly Difference | $537 | Buying costs more monthly |
| Annual Savings (Year 7) | $4,179 | By buying vs renting |
Rent vs Buy Analysis Over Time
Market Scenario Analysis
| Scenario | Home Appreciation | 7-Year Savings | Recommendation |
|---|---|---|---|
| Conservative | 2.0% | -$15,432 | Rent |
| Moderate | 3.5% | $29,252 | Buy |
| Optimistic | 5.0% | $73,936 | Buy |
| Hot Market | 7.0% | $118,620 | Buy |
Time Period Analysis
| Time Period | Buying Net Cost | Renting Total Cost | Difference |
|---|---|---|---|
| 3 Years | $145,832 | $95,420 | -$50,412 |
| 5 Years | $178,256 | $162,350 | -$15,906 |
| 7 Years | $202,168 | $231,420 | $29,252 |
| 10 Years | $215,892 | $342,180 | $126,288 |
Key Financial Factors
| Factor | Impact on Decision | Current Value | Assessment |
|---|---|---|---|
| Down Payment | Favors Renting | $80,000 | High |
| Monthly Cost Difference | Favors Renting | $537 | Significant |
| Home Appreciation | Favors Buying | 3.5% | Moderate |
| Tax Benefits | Favors Buying | 25% bracket | Good |
Decision Analysis
🏠 Buying is Recommended
Based on your 7-year analysis period, buying saves $29,252 compared to renting. While buying has higher monthly costs ($537 more), the combination of equity building, home appreciation, and tax benefits makes it financially advantageous. The break-even point occurs at 4.2 years, after which buying becomes increasingly cost-effective.
Based on your 7-year analysis period, buying saves $29,252 compared to renting. While buying has higher monthly costs ($537 more), the combination of equity building, home appreciation, and tax benefits makes it financially advantageous. The break-even point occurs at 4.2 years, after which buying becomes increasingly cost-effective.
Important Considerations:
- This analysis assumes you'll stay in the home for the full analysis period
- Home appreciation rates can vary significantly by location and market conditions
- Consider your job stability, family plans, and local market trends
- Renting offers more flexibility for relocation and lifestyle changes
- Buying builds equity but requires ongoing maintenance and repairs