Should I rent or buy?

This calculator compares the cost of renting versus the real cost of buying a home.

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Calculator Results

If you buy, you could save $84,567.85 over the next 5 years.

Calculator results detail

Payment breakdown



Monthly payment



Monthly taxes, maintenance, insurance, association dues and PMI



Total monthly payment

$2,130.00 to


Total payments over 5 years



Tax savings over 5 years



Total payments



Total payments less tax savings



Total tax savings



Home appreciation vs comparison investment over 5 years



Sale price of home


Remaining loan balance


Cost for purchase and sale of home


Down payment, points, and closing costs invested


Investment return


Investment tax owed


Gain on home or comparison investment



Total cost analysis over 5 years



Total payments



Total tax savings


Gain on home or comparison investment






Calculator tips

Home purchase is potentially the greatest investment you will make in your lifetime. This calculator considers only the financial benefits of renting vs buying. Home ownership has other benefits as well. Please consider all the factors when making your final decision.

Your tax rate is used to calculate the monthly advantage of your interest deduction. If you wish not to include the interest deduction advantage, you may set your tax rate to 0. Please keep in mind that your tax deduction may be limited beyond the scope of this calculator. Talk to your tax advisor before using these results in your specific situation.

Your investment rate of return is used to compare the difference between investing in a house and investing elsewhere (e.g., like your savings account).

Tax on your yield in equity is not taken into account. Talk to your tax advisor if you think you may be subject to this tax.

This calculator does not consider the potential benefits of accepting the standard rent credit or the standard deduction when comparing the tax savings of renting versus buying a home. The decision to itemize or accept the standard deduction is beyond the scope of this calculator.

"Cost for purchase and sale of home" includes agent commission for selling as well as closing costs, points, and fees for buying.

This calculator assumes that the difference between the monthly rent payment and the monthly mortgage payment is not invested.

Calculator disclaimer

The information provided by these calculators is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.

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