Finance
Rent vs Buy Comparison Calculator
Roughly compare monthly renting with monthly owning, side by side.
A positive difference means monthly owning costs more than monthly renting in this comparison, while a negative difference would mean owning costs less per month.
Formula
Monthly owning cost is the mortgage payment on price minus down payment plus monthly tax, insurance, and HOA; compare it with rent.
How it works
This is a monthly cash comparison only — it ignores home price growth, rent rises, maintenance, selling costs, and tax effects, so it is a starting point, not a buy-or-rent verdict.
Worked example
For example, monthly rent of $1,500 compared with a $300,000 home, a $60,000 down payment, a 6.5% mortgage over 30 years, and $500 a month for tax, insurance, and HOA gives monthly owning of $2,016.96, which is $516.96 more than renting.
FAQs
Why is owning often higher at first?
Mortgage plus ownership costs can exceed rent, especially with a small down payment.
What costs are missing?
Maintenance, repairs, and selling costs on the owning side.
Does it say which is better long term?
No — long-term value depends on price growth and how long you stay.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.
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