How to use rent vs buy
- Enter rent, home price, down payment, mortgage rate and term, and planning horizon in years.
- Set annual appreciation, rent growth, maintenance, and property tax as percent of home value.
- Read total rent, net buy cost after end equity, and the model lean hint.
- Start from presets, then edit; copy link to share assumptions.
What the model compares
A simplified multi-year view: rent paid vs buy-side cash flows and end-of-horizon home equity—not closing costs, tax deductions, insurance, or opportunity cost on the down payment. Use for direction, not as the only decision input.
Mortgage and affordability tools
Payment detail: mortgage calculator. Income-based max price: house affordability or debt-to-income.
Planning horizon
Use the minimum years you expect to stay. Shorter horizons often favor renting in real life because of transaction costs—even though this model omits those fees. Try 3, 5, 7, and 10 years if unsure.
Frequently asked questions
How accurate is rent vs buy here?
This is a simplified model: rent, down payment, mortgage P&I, maintenance, property tax, appreciation, and end equity—no closing costs, tax deductions, insurance, HOA, or investment return on the down payment. Good for direction, not a sole decision tool.
What planning horizon should I use?
Use the minimum years you realistically expect to stay before selling or moving. Shorter horizons often favor renting in real life because of transaction costs—even though this model omits those fees.
What does the model lean recommendation mean?
If total rent vs net buy cost differs by more than about $500, the UI leans rent or buy; otherwise it shows roughly even. That threshold is a display hint only—consider cash flow and lifestyle too.
How should I estimate maintenance and property tax?
Maintenance is often a percent of home value per year (higher for older homes). Property tax can be your effective local rate as a percent of value. Start with presets, then swap in your numbers.
How does this relate to the mortgage calculator?
The mortgage calculator focuses on one loan’s payment and interest. This page embeds the loan in a multi-year rent vs buy comparison with rent growth and end equity. Follow links for payment detail or affordability.
Can down payment be zero?
Down payment must be less than home price. True zero-down is rare; for experiments use a small positive down payment and remember approval rules are not modeled here.
Does this include inflation or rising rates?
You can set separate annual growth rates for rent and home prices. The mortgage rate is fixed for the loan—no adjustable-rate repricing.
Can I share this scenario with someone?
Yes. Copy link below the form keeps your current inputs so you can share the scenario or save it for later.