Does this include HOA dues or PMI?

Not yet. Add HOA and PMI manually to the ownership total.

What about tax deductions or appreciation?

This focuses on cash outflow. Use a full buy-vs-rent model for tax and equity assumptions.

finance calculator

Rent vs Buy Calculator

Compare monthly rent to monthly ownership costs with mortgage, taxes, insurance, and maintenance.

Results

Monthly ownership cost: $3,225 USD
Rent (year 1): $2,200 USD
Rent (year 2 projection): $2,266 USD
Upfront costs: $99,000 USD
Ownership − rent (monthly): $1,025 USD

How to use this calculator

Enter home price, down payment, rate, term, taxes/insurance, and maintenance.
Add closing cost %, monthly rent, and expected rent increase.
See monthly ownership cost, year-1 rent, projected year-2 rent, upfront costs, and the monthly difference.

Inputs explained

Home price / Down payment %: Purchase price and percent down for the buy scenario.
Mortgage rate / Term: APR and term for the ownership side.
Property tax rate / Insurance: Annual carrying costs for ownership.
Maintenance % of value: Annual maintenance as a percent of home value (e.g., 1%).
Closing costs %: Percent of home price for closing costs (owner side).
Monthly rent / Rent increase %: Current rent and expected annual increase.

How it works

Mortgage payment uses price minus down payment, APR, and loan term.

Ownership adds estimated property taxes, insurance, and maintenance.

Rent includes a projected increase for year two to highlight escalation.

Formula

Mortgage = P × [r(1+r)^n]/[(1+r)^n − 1]
Ownership = Mortgage + Taxes + Insurance + Maintenance
Upfront = Down payment + Closing costs

When to use it

Comparing monthly costs of renting vs buying over the first few years.
Testing different down payments or rent growth assumptions.
Understanding how taxes/insurance/maintenance change the ownership math.

Tips & cautions

Include HOA and PMI manually if applicable; they add to ownership costs.
Use conservative maintenance estimates (1–2% of home value annually).
Rerun with different rent increase assumptions to see how rent escalation affects the gap.
Does not model appreciation, tax deductions, equity build, or selling costs.
PMI/HOA are not included—add them manually to ownership costs.

Worked examples

$450k home, 20% down, 6.5% APR

Ownership ≈ $3,084/mo
Rent = $2,200 → $2,266 next year

$350k home, 10% down, 6% APR

Ownership ≈ $2,415/mo
Rent = $1,900 → $1,957 next year

Deep dive

This rent vs buy calculator compares monthly ownership costs (mortgage, taxes, insurance, maintenance) to rent, with rent escalation. Enter your home price, down payment, rates, and rent assumptions to see the monthly difference and upfront costs.

Use it to gauge near-term affordability; for a full analysis, add appreciation, tax effects, and equity over time.

FAQs

Does this include HOA dues or PMI?: Not yet. Add HOA and PMI manually to the ownership total.
What about tax deductions or appreciation?: This focuses on cash outflow. Use a full buy-vs-rent model for tax and equity assumptions.

Related calculators

finance

Mortgage Payment Calculator

Estimate your monthly mortgage payment, total interest, and payoff schedule with one input-driven tool.

finance

Home Affordability Calculator

Estimate how much house you can afford based on income, debts, down payment, and estimated taxes/insurance.

For informational use only. Housing costs vary by lender, taxes, and insurance provider.