Rent or Buy Calculator
Use our rent or buy calculator to get a quick and straightforward
comparison of the costs accompanying each option.
- Enter ballpark values by clicking on and dragging the diamond-shaped
sliders left or right. Enter exact numbers by clicking on the
number in the box on the right and type your number (no commas).
- The results of your calculations show in the box at the bottom
of the calculator.
Buy Information Home price
Simply enter the amount of the home you would like to purchase.
Down Payment
You can enter the amount of the down payment you plan to make and
the calculator will deduct it from the home price to determine the
total amount of your loan.
Deductible Loan Costs
Some of your loan costs, such as points are deductible. Some lenders
call these loan origination fees. If you plan to pay for points
on the loan enter the number here. Remember that the points paid
will increase the cost of owning but your cost of ownership will
be slightly lowered because of the deduction.
Loan Costs
Enter the nondeductible loan costs so they can be added to the cost
of ownership.
Loan Rate
Your monthly payment, a large part of ownership cost, will be determined
by the interest rate and the loan amount. By entering your lenders
rate here the calculator can quickly determine the amount of your
monthly payment.
Loan Term
The term of your loan also helps to determine your monthly payment
and other variables so enter the number of years you want to have
your loan.
Property Taxes
Enter the property taxes you will pay yearly. These will initially
increase the ownership cost but are deductible so the overall cost
will be slightly reduced.
Other Expenses
You should enter any annual nondeductible homeowner expenses that
will add to the home ownership cost you are expecting to pay.
Years to Sell
Please enter the number of years you will keep the home before selling
it. This will be used as the base time period for renting vs. buying
comparison costs.
Annual Appreciation
As the value of your home increases the cost of ownership will decrease.
Try to anticipate the rate that your home’s value will increase
and enter it here.
Selling Cost
Selling cost can include expenses like renovations you make to help
sell the home, realtor commission, and closing cost. All of these
will increase your cost of ownership and should be entered here.
Rent Information Monthly
Rent
Enter the amount of rent you will pay each month.
Rent Increases
Simply enter the average percentage you anticipate your rent will
increase every year.
Financial Assumptions Tax
Rate
The federal and state income tax rate you enter will be used to
compute the tax break you will receive for the interest you pay
on your home loan. This will reduce the ownership costs if you choose
to purchase a home. It will also be used to show how the savings
you would accrue will be reduced if you decide to rent a home.
Savings Rate
You may choose to invest the money set aside for a down payment
instead of purchasing a home. Enter the average yield on investments
you would make to see how this will reduce the cost of renting.
Results This box provides a simple
comparison between the cost of renting and the cost of owning so
that you can easily see which one will save you the most money.
Click
Here to open the Rent or Buy Calculator
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